Q4 2023 Everest Group Ltd Earnings Call

February 8, 2024

Operator: Good day and welcome to the Everest Group fourth quarter 2023 earnings Conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question you May press Star then one on your telephone keypad. To withdraw your question. Please press Star then two. Please note today's event is being recorded. I would now like to turn the conference over to Matt Rowland, Senior Vice President and head of Investor Relations. Please go ahead Sir.

Operator: Good day and welcome to the Everest Group fourth quarter 2023 earnings Conference call. All participants will be in listen-only mode.

All participants will be in listen only mode.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question you May press Star then one on your telephone keypad. To withdraw your question. Please press Star then two. Please note today's event is being recorded. I would now like to turn the conference over to Matt Rowland, Senior Vice President and head of Investor Relations. Please go ahead Sir.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Should you need assistance. Please signal a conference specialist by pressing the star can you followed by zero.

After todays presentation, there will be an opportunity to ask questions.

Operator: To ask a question you May press Star then one on your telephone keypad. To withdraw your question. Please press Star then two. Please note today's event is being recorded. I would now like to turn the conference over to Matt Rowland, Senior Vice President and head of Investor Relations. Please go ahead Sir.

Operator: To ask a question you May press Star then one on your telephone keypad. To withdraw your question. Please press Star then two.

I'll ask a question you May press Star then one on your telephone keypad.

Your question. Please press Star then two.

Operator: Please note today's event is being recorded. I would now like to turn the conference over to Matt Rowland, Senior Vice President and head of Investor Relations. Please go ahead Sir.

Please note today's event is being recorded.

I would now like to turn the conference over to Matt Rowland Senior Vice President and head of Investor Relations. Please go ahead Sir.

Matt Rowland: Good morning, everyone and welcome to the Everest Group Limited fourth quarter of 2023 earnings Conference call, the Everest Executive leading today's call are Juan Andrade, President and CEO and Mark Kociancic Executive Vice President and CFO. We're also joined by members of the Everest management team. Before we begin I'll preface the comments on today's call by noting that Everest SEC filings, including extensive disclosures with respect to forward looking statements. Management comments regarding estimates projections or similar are subject to the risks, uncertainties and assumptions as noted in this filings. Management may also refer to certain non-GAAP financial measures, these measures are reconciled in our earnings release and financial supplement. With that, I'll turn the call over to Juan.

Matt Rowland: Vice President and CFO. We're also joined by members of the Everest team.

Matt Rowland: We're also joined by members of the Everest management team. Before we begin I'll preface the comments on today's call by noting that Everest SEC filings, including extensive disclosures with respect to forward looking statements. Management comments regarding estimates projections or similar are subject to the risks, uncertainties and assumptions as noted in this filings. Management may also refer to certain non-GAAP financial measures, these measures are reconciled in our earnings release and financial supplement. With that, I'll turn the call over to Juan.

Before we begin I will preface the comments on today's call I noted that every SEC filings, including extensive disclosures with respect to forward looking statements management comments regarding estimates projections.

Matt Rowland: Management comments regarding estimates projections or similar are subject to the risks, uncertainties and assumptions as noted in this filings. Management may also refer to certain non-GAAP financial measures, these measures are reconciled in our earnings release and financial supplement. With that, I'll turn the call over to Juan.

Matt Rowland: Management comments regarding estimates projections or similar are subject to the risks, uncertainties and assumptions as noted in this filings.

Are subject to risks uncertainties and assumptions.

Matt Rowland: Management may also refer to certain non-GAAP financial measures, these measures are reconciled in our earnings release and financial supplement. With that, I'll turn the call over to Juan.

Management May also refer to certain non-GAAP financial measures is that things are reconciled in our earnings release and financial supplement with that I'll turn the call over to Juan.

Juan C. Andrade: Thank you Matt Good morning, everyone. Thank you for joining us. 2023 what's the most profitable year in our history. We delivered exceptional full year results. We achieved record underwriting income. Record net investment income. Operating income. Net income and record operating cash flow. We executed on our objectives. And delivered a 2023 operating ROE of over 23% and. And a total shareholder return. Over 26%. The strength and quality of our franchise was evident as we achieved these results in another elevated catastrophe year. I'll also taking prudent actions to further strengthen our balance sheet. Everest capitalized on the hard market to grow in attractive lines across our businesses. Our precise execution. 2020 for January reinsurance renewal created excellent outcomes. We completed the deployment of our $1 $5 billion equity capital raise on schedule. Superb risk adjusted returns. We expanded key client relationships, while improving the scale. Quality and profit potential of our portfolio. Giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals remain excellent. Our capital strength. So as to profitably grow both underwriting businesses. I'd ever Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective. To generate industry, leading financial returns consistently and across market cycles. And we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business. Everest has a more diversified and higher margin business with a strong underwriting culture of execution and accountability.

Juan C. Andrade: Thank you Matt. Good morning, everyone, thank you for joining us. 2023 what's the most profitable year in our history. We delivered exceptional full year results, we achieved record underwriting income, record net investment income, record operating income, record net income and record operating cash flow. We executed on our objectives and delivered a 2023 operating ROE of over 23% and a total shareholder return of over 26%. The strength and quality of our franchise was evident as we achieved these results in another elevated catastrophe year while also taking prudent actions to further strengthen our balance sheet. Everest capitalized on the hard market to grow in attractive lines across our businesses, our precise execution at the 2024 January reinsurance renewal created excellent outcomes. We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns. We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: Thank you Matt. Good morning, everyone, thank you for joining us. 2023 what's the most profitable year in our history.

2023 what's the most profitable year in our history.

We delivered exceptional full year results.

Juan C. Andrade: We delivered exceptional full year results, we achieved record underwriting income, record net investment income, record operating income, record net income and record operating cash flow. We executed on our objectives and delivered a 2023 operating ROE of over 23% and a total shareholder return of over 26%. The strength and quality of our franchise was evident as we achieved these results in another elevated catastrophe year while also taking prudent actions to further strengthen our balance sheet. Everest capitalized on the hard market to grow in attractive lines across our businesses, our precise execution at the 2024 January reinsurance renewal created excellent outcomes. We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns. We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

We achieved record underwriting income.

Record net investment income.

Operating income.

Net income and record operating cash flow.

We executed on our objectives.

Matt Rowland: And delivered a 2023 operating ROE of over 23% and.

Matt Rowland: And a total shareholder return.

Juan C. Andrade: The strength and quality of our franchise was evident as we achieved these results in another elevated catastrophe year while also taking prudent actions to further strengthen our balance sheet. Everest capitalized on the hard market to grow in attractive lines across our businesses, our precise execution at the 2024 January reinsurance renewal created excellent outcomes. We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns. We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Over 26%.

The strength and quality of our franchise was evident as we achieved these results in another elevated catastrophe year.

Matt Rowland: I'll also taking prudent actions to further strengthen our balance sheet.

Juan C. Andrade: Everest capitalized on the hard market to grow in attractive lines across our businesses, our precise execution at the 2024 January reinsurance renewal created excellent outcomes. We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns. We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Everest capitalized on the hard market to grow in attractive lines across our businesses.

Our precise execution.

2020 for January reinsurance renewal created excellent outcomes.

Juan C. Andrade: We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns. We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: We completed the deployment of our $1.5 billion dollars equity capital raise on schedule and a superb risk adjusted returns.

We completed the deployment of our $1 $5 billion equity capital raise on schedule.

Juan C. Andrade: We expanded key client relationships, while improving to scale quality and profit potential of our portfolio, giving us a strong start to the year. Market conditions remained strong. We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Superb risk adjusted returns.

We expanded key client relationships, while improving the scale.

Matt Rowland: Quality and profit potential of our portfolio.

Giving us a strong start to the year.

Juan C. Andrade: We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent. Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals to remain excellent.

Matt Rowland: Market conditions remained strong.

We are not seeing any meaningful new capacity enter the market and we expect conditions for upcoming renewals remain excellent.

Juan C. Andrade: Our capital strength positions us to profitably grow both underwriting businesses. At Everest Investor Day last November we outlined our progress strategy and financial objectives for the next three years. As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Our capital strength.

So as to profitably grow both underwriting businesses.

I'd ever Investor Day last November we outlined our progress strategy and financial objectives for the next three years.

Juan C. Andrade: As you have seen from our 2023 results we are on track to achieve these goals. Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: As you have seen from our 2023 results we are on track to achieve these goals.

As you have seen from our 2023 results we are on track to achieve these goals.

Juan C. Andrade: Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered. We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: Our primary objective is to generate industry, leading financial returns consistently and across market cycles and we have delivered.

Our primary objective.

To generate industry, leading financial returns consistently and across market cycles.

Juan C. Andrade: We are building on momentum created by our actions to transform Everest over the past four years. Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: We are building on momentum created by our actions to transform Everest over the past four years.

And we have delivered.

We are building on momentum created by our actions to transform Everest over the past four years.

Juan C. Andrade: Operating as one Everest, we elevated all aspects of our business.

Operating as one Everest, we elevated all aspects of our business.

Juan C. Andrade: Everest has a more diversified and higher margin business with a strong underwriting culture of execution and accountability. These guys are underwriting decisions. And our drive to outperform. And that allows us to deliver on our long term objectives. Turning to the full year financial highlights beginning with the group. The group delivered outstanding results in 2023. As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2 $5 billion for the year. We grew by 21% in constant dollars. Ending the year at nearly 17 billion and gross written premium. Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1 2 billion an underwriting profit. So a company record and we improved the combined ratio of more than five points to 99. By industry catastrophe losses exceeding $120 billion. We achieved a six point year over year improvement in the group loss ratio. Contributing to our excellent underwriting results. Building, the strength and flexibility of average balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position. Mark will provide more detail on these actions. Turning to investments we achieved another record with annual net investment income of $1 4 billion. Driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year. Our disciplined planning and execution in 2023 allowed us to capitalize on the generational heart property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11 5 billion in total gross written premiums. Growth was broad based as we expanded with core seats. Drew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe <unk>. Including in targeted proportional property deals aviation marine and in faculty with strong expected returns in these lines. The division delivered $1 3 billion, an underwriting profit for the year.

Juan C. Andrade: Everest has a more diversified and higher margin business with a strong underwriting culture of execution and accountability. This guides our underwriting decisions, and our drive to outperform, and that allows us to deliver on our long term objectives. Turning to the full year financial highlights, beginning with the group. The group delivered outstanding results in 2023. As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2.5 billion for the year. We grew by 21% in constant dollars, ending the year at nearly 17 billion in gross written premium. Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Everest has a more diversified and higher margin business with a strong underwriting culture of execution and accountability.

Everest has a more diversified and higher margin business with a strong underwriting culture of execution and accountability.

Juan C. Andrade: This guides our underwriting decisions, and our drive to outperform, and that allows us to deliver on our long term objectives. Turning to the full year financial highlights, beginning with the group. The group delivered outstanding results in 2023. As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2.5 billion for the year. We grew by 21% in constant dollars, ending the year at nearly 17 billion in gross written premium. Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

These guys are underwriting decisions.

And our drive to outperform.

And that allows us to deliver on our long term objectives.

Turning to the full year financial highlights beginning with the group.

The group delivered outstanding results in 2023.

Juan C. Andrade: The group delivered outstanding results in 2023. As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2.5 billion for the year. We grew by 21% in constant dollars, ending the year at nearly 17 billion in gross written premium. Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: The group delivered outstanding results in 2023.

Juan C. Andrade: As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2.5 billion for the year. We grew by 21% in constant dollars, ending the year at nearly 17 billion in gross written premium. Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

As I said, we achieved new company profitability records, including annual operating income and net income, which both exceeded $2 $5 billion for the year.

We grew by 21% in constant dollars.

Ending the year at nearly 17 billion and gross written premium.

Juan C. Andrade: Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance. We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance.

Our performance was supported by the execution of our strategies and our ability to take advantage of strong market conditions and reinsurance and insurance.

Juan C. Andrade: We generated $1.2 billion in underwriting profit, also a company record, and we improved the combined ratio more than five points to 90.9 despite industry catastrophe losses exceeding $120 billion dollars. We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

We generated $1 2 billion an underwriting profit.

So a company record and we improved the combined ratio of more than five points to 99.

By industry catastrophe losses exceeding $120 billion.

Juan C. Andrade: We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results. Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: We achieved a six point year over year improvement in the group loss ratio, contributing to our excellent underwriting results.

We achieved a six point year over year improvement in the group loss ratio.

Contributing to our excellent underwriting results.

Juan C. Andrade: Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company. This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Building, the strength and flexibility of Everest balance sheet has been a priority for this management team since we took over this company.

Building, the strength and flexibility of average balance sheet has been a priority for this management team since we took over this company.

This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position.

Juan C. Andrade: This was reflected in the quarter through our modest favorable development as we built additional strength into our already strong reserve position, Mark will provide more detail on these actions. Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Matt Rowland: Mark will provide more detail on these actions.

Turning to investments we achieved another record with annual net investment income of $1 4 billion.

Juan C. Andrade: Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment. Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Turning to investments, we achieved another record with annual net investment income of $1.4 billion, driven by our actions to capitalize on the rising interest rate environment.

Driven by our actions to capitalize on the rising interest rate environment.

Now for the underwriting segments, beginning with reinsurance.

Juan C. Andrade: Now for the underwriting segments, beginning with reinsurance. The reinsurance division had an exceptional year, our disciplined planning and execution in 2023 allowed us to capitalize on the generational hard property market. Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

The reinsurance division had an exceptional year.

Our disciplined planning and execution in 2023 allowed us to capitalize on the generational heart property market.

Delivering outstanding top line growth and bottom line results.

Juan C. Andrade: Delivering outstanding top line growth and bottom line results. For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Delivering outstanding top line growth and bottom line results.

For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11 5 billion in total gross written premiums.

Juan C. Andrade: For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums. Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: For the full year 2023 growth was 26% in constant dollars and excluding reinstatement premiums with $11.5 billion in total gross written premiums.

Growth was broad based as we expanded with core seats.

Juan C. Andrade: Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities. We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Juan C. Andrade: Growth was broad based as we expanded with core seeds, grew in targeted markets and allocated capital to higher return opportunities.

Drew in targeted markets and allocated capital to higher return opportunities.

We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns.

Juan C. Andrade: We grew our core North American property catastrophe portfolio by over 30% at exceptional risk adjusted returns. Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia. We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Internationally, we grew our total property portfolio by over 40% with strong and targeted growth in Europe and Asia.

We also leaned into growth opportunities outside of property catastrophe <unk>.

Juan C. Andrade: We also leaned into growth opportunities outside of property catastrophe, including in targeted proportional property deals, aviation, marine and in facultative with strong expected returns in these lines.

Including in targeted proportional property deals aviation marine and in faculty with strong expected returns in these lines.

Juan C. Andrade: The division delivered $1 3 billion, an underwriting profit for the year. The attritional loss ratio improved by a full point to 57 seven. And the Attritional combined ratio was down 110 basis points from 2022, when adjusted for prior year commissions related to the reserve releases. We leverage deep client and broker relationships and our strong balance sheet to build a more profitable and higher margin book, which culminated and outstanding results at the January 2020 for renewal. At 124, we grew our total property catastrophe portfolio by over 25% compared to expiring premium. Following the significant increases in 2023, we saw further property catastrophe rate increases at one one. Broadly across geographies and. In North America, the property Cat ex ol risk adjusted rate change was approximately 7%. Internationally rates on our portfolio were up 14%. This trend also continued in specialty lines, particularly marine and aviation. The flight to quality in the reinsurance market continue. Our leading market position allowed adverse to grow market share an oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business. This reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held. While the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at one one. We nonrenewed. 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares unattractive casualty programs with select top clients. We achieved our objectives at one one. Executing with the same discipline and focus efforts is consistently applied to shaping and diversifying the portfolio. We do not write the market. We selectively underwrite risks that meet our requirements. Our priority is growing the bottom line to deliver leading financial returns. Coming out of the one one renewal. Quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division. 123 was a pivotal year forever insurance, we advanced our key objectives, while establishing strong foundations.

Juan C. Andrade: The division delivered $1.3 billion in underwriting profit for the year, the attritional loss ratio improved by a full point to 57.7, and the Attritional combined ratio was down 110 basis points from 2022, when adjusted for prior year commissions related to the reserve releases. We leverage deep client and broker relationships and our strong balance sheet to build a more profitable and higher margin book, which culminated in outstanding results at the January 2024 renewal. At 1/1/24, we grew our total property catastrophe portfolio by over 25% compared to expiring premium. Following the significant increases in 2023, we saw further property catastrophe rate increases at 1/1 broadly across geographies. In North America, the Property Cat XOL risk adjusted rate change was approximately 7%. Internationally, rates on our portfolio were up 14%, this trend also continued in specialty lines, particularly marine and aviation. The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Matt Rowland: The division delivered $1 3 billion, an underwriting profit for the year.

Matt Rowland: The attritional loss ratio improved by a full point to 57 seven.

Matt Rowland: And the Attritional combined ratio was down 110 basis points from 2022, when adjusted for prior year commissions related to the reserve releases.

Juan C. Andrade: We leverage deep client and broker relationships and our strong balance sheet to build a more profitable and higher margin book, which culminated in outstanding results at the January 2024 renewal. At 1/1/24, we grew our total property catastrophe portfolio by over 25% compared to expiring premium. Following the significant increases in 2023, we saw further property catastrophe rate increases at 1/1 broadly across geographies. In North America, the Property Cat XOL risk adjusted rate change was approximately 7%. Internationally, rates on our portfolio were up 14%, this trend also continued in specialty lines, particularly marine and aviation. The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

We leverage deep client and broker relationships and our strong balance sheet to build a more profitable and higher margin book, which culminated and outstanding results at the January 2020 for renewal.

Juan C. Andrade: At 1/1/24, we grew our total property catastrophe portfolio by over 25% compared to expiring premium. Following the significant increases in 2023, we saw further property catastrophe rate increases at 1/1 broadly across geographies. In North America, the Property Cat XOL risk adjusted rate change was approximately 7%. Internationally, rates on our portfolio were up 14%, this trend also continued in specialty lines, particularly marine and aviation. The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

At 124, we grew our total property catastrophe portfolio by over 25% compared to expiring premium.

Following the significant increases in 2023, we saw further property catastrophe rate increases at one one.

Juan C. Andrade: In North America, the Property Cat XOL risk adjusted rate change was approximately 7%. Internationally, rates on our portfolio were up 14%, this trend also continued in specialty lines, particularly marine and aviation. The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Broadly across geographies and.

In North America, the property Cat ex ol risk adjusted rate change was approximately 7%.

Internationally rates on our portfolio were up 14%.

This trend also continued in specialty lines, particularly marine and aviation.

Juan C. Andrade: The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals. With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Juan C. Andrade: The flight to quality in the reinsurance market continued, our leading market position allowed adverse to grow market share on oversubscribed deals.

The flight to quality in the reinsurance market continue.

Our leading market position allowed adverse to grow market share an oversubscribed deals.

Juan C. Andrade: With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world. Our clients signed out other carriers to make more room for Everest. We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

With leading clients on the best quality property cat cyber specialty lines treaties and in geographies around the world.

Matt Rowland: Our clients signed out other carriers to make more room for Everest.

Juan C. Andrade: We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business, this reflects the strength of our franchise and reputation in the market. To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

We also played a leading role in several of the increased cat limit purchases being made by some of the best primary insurance underwriters in the business.

This reflects the strength of our franchise and reputation in the market.

Juan C. Andrade: To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties. The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Juan C. Andrade: To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties.

To illustrate the point, we generated close to $300 million in additional premium growth through increased shares on existing property treaties.

Juan C. Andrade: The favorable terms and conditions that we achieved during the 2023 renewals held, while the attachment points, which increased significantly last year were maintained. We were also surgical in our approach towards certain casualty lines at 1/1 . We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

The favorable terms and conditions that we achieved during the 2023 renewals held.

While the attachment points, which increased significantly last year were maintained.

We were also surgical in our approach towards certain casualty lines at one one.

Juan C. Andrade: We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds. These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Juan C. Andrade: We non-renewed 16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds.

We nonrenewed.

16% of our casualty and professional liability pro rata business, particularly when ceding commissions does not meet our thresholds.

Juan C. Andrade: These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients. We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Juan C. Andrade: These targeted actions, however were partially offset by expanding shares on attractive casualty programs with select top clients.

These targeted actions, however were partially offset by expanding shares unattractive casualty programs with select top clients.

Juan C. Andrade: We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio. We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

Juan C. Andrade: We achieved our objectives at 1/1, executing with the same discipline and focus Everest is consistently applied to shaping and diversifying the portfolio.

We achieved our objectives at one one.

Executing with the same discipline and focus efforts is consistently applied to shaping and diversifying the portfolio.

Juan C. Andrade: We do not write the market, we selectively underwrite risks that meet our requirements, our priority is growing the bottom line to deliver leading financial returns. Coming out of the 1/1 renewal, the quality of our book is excellent. We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

We do not write the market.

We selectively underwrite risks that meet our requirements.

Our priority is growing the bottom line to deliver leading financial returns.

Coming out of the one one renewal.

Quality of our book is excellent.

Juan C. Andrade: We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform. Now turning to our primary insurance division.

We are positioned to drive sustainable margin expansion, while continuing to distinguish ourselves as the preferred lead market platform.

Now turning to our primary insurance division.

123 was a pivotal year forever insurance, we advanced our key objectives, while establishing strong foundations.

Juan C. Andrade: 123 was a pivotal year forever insurance, we advanced our key objectives, while establishing strong foundations. We solidified and enhanced the divisions global leadership team with top talent in the right places operating through a regionalized structure aligned to customer needs. In 2023, we grow the insurance business by 10% in constant dollars achieving record annual premium of over $5 billion. Growth was balanced and diversified by product business line and geography. We saw excellent opportunities in property and specialty lines, including Marine aviation trade credit and political risk. We are disciplined. The modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focus on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved broad based 12% rate increase in our core portfolio. Excluding workers' compensation and financial lines. Beyond property pricing accelerated and was particularly strong in marine and other specialty lines commercial auto general liability and excess liability. Overall. <unk> remains ahead of loss trend. We will only grow where we can do it profitably. We will remain disciplined and less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation on long tail lines into 2016 to 2019 period. The core underlying performance of the book is strong. We advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023 scaling our insurance platform across Latin America. The U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies. We are on track for new openings this year in Colombia, and Mexico and Australia. While we have tremendous headroom and lucrative markets. We are focused only on the most accretive opportunities. Since this management team took over in 2020.

Juan C. Andrade: 2023 was a pivotal year for Everest insurance, we advanced our key objectives while establishing strong foundations. We solidified and enhanced the division's global leadership team with top talent in the right places operating through a regionalized structure aligned to customer needs. In 2023, we grew the insurance business by 10% in constant dollars achieving record annual premium of over $5 billion dollars, growth was balanced and diversified by product, business line and geography. We saw excellent opportunities in property and specialty lines, including Marine, aviation, trade credit and political risk. We are disciplined, the modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focused on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: 2023 was a pivotal year for Everest insurance, we advanced our key objectives while establishing strong foundations.

Juan C. Andrade: We solidified and enhanced the division's global leadership team with top talent in the right places operating through a regionalized structure aligned to customer needs. In 2023, we grew the insurance business by 10% in constant dollars achieving record annual premium of over $5 billion dollars, growth was balanced and diversified by product, business line and geography. We saw excellent opportunities in property and specialty lines, including Marine, aviation, trade credit and political risk. We are disciplined, the modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focused on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: We solidified and enhanced the division's global leadership team with top talent in the right places operating through a regionalized structure aligned to customer needs.

We solidified and enhanced the divisions global leadership team with top talent in the right places operating through a regionalized structure aligned to customer needs.

In 2023, we grow the insurance business by 10% in constant dollars achieving record annual premium of over $5 billion.

Juan C. Andrade: In 2023, we grew the insurance business by 10% in constant dollars achieving record annual premium of over $5 billion dollars, growth was balanced and diversified by product, business line and geography. We saw excellent opportunities in property and specialty lines, including Marine, aviation, trade credit and political risk. We are disciplined, the modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focused on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Growth was balanced and diversified by product business line and geography.

We saw excellent opportunities in property and specialty lines, including Marine aviation trade credit and political risk.

Juan C. Andrade: We saw excellent opportunities in property and specialty lines, including Marine, aviation, trade credit and political risk. We are disciplined, the modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focused on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: We saw excellent opportunities in property and specialty lines, including Marine, aviation, trade credit and political risk.

Juan C. Andrade: We are disciplined, the modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focused on lines of business meeting our return thresholds. We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

We are disciplined.

The modest growth in certain casualty lines was primarily driven by robust rate increases as we remain prudent in our writings and focus on lines of business meeting our return thresholds.

We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory.

Juan C. Andrade: We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory. For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: We continue to shift to shorter tail lines with favorable pricing and a strong profit trajectory.

For both the year and the fourth quarter, we achieved broad based 12% rate increase in our core portfolio.

Juan C. Andrade: For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines. Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: For both the year and the fourth quarter, we achieved a broad based 12% rate increase in our core portfolio, excluding workers' compensation and financial lines.

Excluding workers' compensation and financial lines.

Matt Rowland: Beyond property pricing accelerated and was particularly strong in marine and other specialty lines commercial auto general liability and excess liability.

Juan C. Andrade: Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability. Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: Beyond property, pricing accelerated and was particularly strong in marine and other specialty lines, commercial auto, general liability and access liability.

Juan C. Andrade: Overall, rate remains ahead of loss trend, we will only grow where we can do it profitably. We will remain disciplined in less attractive lines, including D&O workers' compensation and commercial auto. The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Overall.

<unk> remains ahead of loss trend.

Matt Rowland: We will only grow where we can do it profitably.

Matt Rowland: We will remain disciplined and less attractive lines, including D&O workers' compensation and commercial auto.

Juan C. Andrade: The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period. The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation along tail lines into 2016 to 2019 period.

The combined ratio increase was driven by a reserve strengthening to address the impacts of social inflation on long tail lines into 2016 to 2019 period.

Juan C. Andrade: The core underlying performance of the book is strong, we advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent. They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

The core underlying performance of the book is strong.

We advanced our disciplined international strategy led by a proven entrepreneurial team of industry leaders and local underwriting talent.

Juan C. Andrade: They accomplished a great deal in 2023, scaling our insurance platform across Latin America, the U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed. We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Matt Rowland: They accomplished a great deal in 2023 scaling our insurance platform across Latin America.

The U K, and Ireland, Continental Europe, and Asia Pacific, where our value proposition is differentiated and eagerly welcomed.

Juan C. Andrade: We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

We made strides implementing systems and capabilities, enabling us to operate from common platforms and drive efficiencies.

Juan C. Andrade: We are on track for new openings this year in Colombia, and Mexico and Australia. While we have tremendous headroom and lucrative markets. We are focused only on the most accretive opportunities. Since this management team took over in 2020. We have significantly increased fruit surround risk selection and deployed a disciplined underwriting strategy. We rebuilt the underwriting engine from top to bottom investing in top tier underwriting tools and experienced talent. We significantly strengthened our underwriting guidelines and risk selection parameters. <unk>, we pushed rate in excess of trend broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features. Ace deductibles and lowered limits. We exited certain social inflation prone industry classes and invested an additional claims technology. As I said, if business doesn't meet our underwriting criteria. We just won't right. As we head into 2020 for the insurance Division is executing from a strong foundation. And is well positioned to deliver on the targets, we set out for the business at Investor Day. Our financial results led to the most profitable year in <unk> history. We are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us. And we will make the most of the opportunities in front of us. We have the right team driving a clear strategy with multiple avenues to deliver on our primary goal of generating consistent leading financial returns. We are confident about delivering on our objectives. With that I'll turn it over to Mark to review the financials in more detail. Thank you Warren and good morning, everyone Everest had a strong finish to 2023 for the full year Everest delivered record annual results in underwriting income net investment income operating income and net income. This drove annual operating earnings per share of <unk> 60. $6 39. And an operating return on equity of 23, 1% the annualized <unk> or total shareholder return was excellent at 26, 5%. 24 is off to a great start as we successfully executed on our one one renewals where we enjoyed strong growth in deployed the remaining capital from our one 5 billion equity raise last spring. We capitalized on our market position and prevailing conditions growing in attractive lines of business with expected returns in excess of our financial targets. This was evidenced in particular by strong growth in our property Cat book globally.

Juan C. Andrade: We are on track for new openings this year in Colombia, and Mexico and Australia. While we have tremendous headroom in lucrative markets, we are focused only on the most accretive opportunities. Since this management team took over in 2020, we have significantly increased prudence around risk selection and deployed a disciplined underwriting strategy. We rebuilt the underwriting engine from top to bottom, investing in top tier underwriting tools and experienced talent. We significantly strengthened our underwriting guidelines and risk selection parameters, additionally we pushed rate in excess of trend, broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail. Thank you Warren and good morning, everyone Everest had a strong finish to 2023 for the full year Everest delivered record annual results in underwriting income net investment income operating income and net income. This drove annual operating earnings per share of <unk> 60. $6 39. And an operating return on equity of 23, 1% the annualized <unk> or total shareholder return was excellent at 26, 5%. 24 is off to a great start as we successfully executed on our one one renewals where we enjoyed strong growth in deployed the remaining capital from our one 5 billion equity raise last spring.

Juan C. Andrade: We are on track for new openings this year in Colombia, and Mexico and Australia.

We are on track for new openings this year in Colombia, and Mexico and Australia.

Juan C. Andrade: While we have tremendous headroom in lucrative markets, we are focused only on the most accretive opportunities. Since this management team took over in 2020, we have significantly increased prudence around risk selection and deployed a disciplined underwriting strategy. We rebuilt the underwriting engine from top to bottom, investing in top tier underwriting tools and experienced talent. We significantly strengthened our underwriting guidelines and risk selection parameters, additionally we pushed rate in excess of trend, broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

Juan C. Andrade: While we have tremendous headroom in lucrative markets, we are focused only on the most accretive opportunities.

While we have tremendous headroom and lucrative markets. We are focused only on the most accretive opportunities.

Juan C. Andrade: Since this management team took over in 2020, we have significantly increased prudence around risk selection and deployed a disciplined underwriting strategy. We rebuilt the underwriting engine from top to bottom, investing in top tier underwriting tools and experienced talent. We significantly strengthened our underwriting guidelines and risk selection parameters, additionally we pushed rate in excess of trend, broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

Juan C. Andrade: Since this management team took over in 2020, we have significantly increased prudence around risk selection and deployed a disciplined underwriting strategy.

Since this management team took over in 2020.

We have significantly increased fruit surround risk selection and deployed a disciplined underwriting strategy.

Juan C. Andrade: We rebuilt the underwriting engine from top to bottom, investing in top tier underwriting tools and experienced talent. We significantly strengthened our underwriting guidelines and risk selection parameters, additionally we pushed rate in excess of trend, broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

Juan C. Andrade: We rebuilt the underwriting engine from top to bottom, investing in top tier underwriting tools and experienced talent.

We rebuilt the underwriting engine from top to bottom investing in top tier underwriting tools and experienced talent.

Juan C. Andrade: We significantly strengthened our underwriting guidelines and risk selection parameters, additionally we pushed rate in excess of trend, broadly raised our inflation assumptions and initial loss picks. We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

We significantly strengthened our underwriting guidelines and risk selection parameters.

Matt Rowland: <unk>, we pushed rate in excess of trend broadly raised our inflation assumptions and initial loss picks.

Juan C. Andrade: We added more loss sensitive features, raised deductibles and lowered limits. We exited certain social inflation prone industry classes and invested in additional claims technology. As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

We added more loss sensitive features.

Ace deductibles and lowered limits.

We exited certain social inflation prone industry classes and invested an additional claims technology.

Juan C. Andrade: As I said, if business doesn't meet our underwriting criteria, we just won't write it. As we head into 2024, the insurance Division is executing from a strong foundation and is well positioned to deliver on the targets we set out for the business at Investor Day. Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

As I said, if business doesn't meet our underwriting criteria.

We just won't right.

As we head into 2020 for the insurance Division is executing from a strong foundation.

And is well positioned to deliver on the targets, we set out for the business at Investor Day.

Juan C. Andrade: Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024. As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

Juan C. Andrade: Our financial results led to the most profitable year in Everest's history, we are building on this momentum with an outstanding start to 2024.

Our financial results led to the most profitable year in <unk> history.

We are building on this momentum with an outstanding start to 2024.

Juan C. Andrade: As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us, and we will make the most of the opportunities in front of us. We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

As favorable market conditions persist, we are leaning into robust tailwind across our reinsurance and insurance businesses with the full power of Everest behind us.

Matt Rowland: And we will make the most of the opportunities in front of us.

Juan C. Andrade: We have the right team, driving a clear strategy, with multiple avenues to deliver on our primary goal of generating consistent leading financial returns, we are confident about delivering on our objectives. With that, I'll turn it over to Mark to review the financials in more detail.

We have the right team driving a clear strategy with multiple avenues to deliver on our primary goal of generating consistent leading financial returns.

We are confident about delivering on our objectives.

Juan C. Andrade: With that, I'll turn it over to Mark to review the financials in more detail.

With that I'll turn it over to Mark to review the financials in more detail.

Mark Kociancic: Thank you Juan and good morning, everyone. Everest had a strong finish to 2023, for the full year Everest delivered record annual results in underwriting income, net investment income, operating income and net income. This drove annual operating earnings per share of $66.39, and an operating return on equity of 23.1%. The annualized TSR or total shareholder return was excellent at 26.5%. 2024 is off to a great start as we successfully executed on our 1/1 results, where we enjoyed strong growth has deployed the remaining capital from our 1.5 billion equity raise last spring. We capitalized on our market position and prevailing conditions, growing in attractive lines of business with expected returns in excess of our financial targets, this was evidenced in particular by strong growth in our Property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: Thank you Juan and good morning, everyone.

Thank you Warren and good morning, everyone Everest had a strong finish to 2023 for the full year Everest delivered record annual results in underwriting income net investment income operating income and net income. This drove annual operating earnings per share of <unk> 60.

Mark Kociancic: Everest had a strong finish to 2023, for the full year Everest delivered record annual results in underwriting income, net investment income, operating income and net income. This drove annual operating earnings per share of $66.39, and an operating return on equity of 23.1%. The annualized TSR or total shareholder return was excellent at 26.5%. 2024 is off to a great start as we successfully executed on our 1/1 results, where we enjoyed strong growth has deployed the remaining capital from our 1.5 billion equity raise last spring. We capitalized on our market position and prevailing conditions, growing in attractive lines of business with expected returns in excess of our financial targets, this was evidenced in particular by strong growth in our Property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: Everest had a strong finish to 2023, for the full year Everest delivered record annual results in underwriting income, net investment income, operating income and net income.

Mark Kociancic: This drove annual operating earnings per share of $66.39, and an operating return on equity of 23.1%. The annualized TSR or total shareholder return was excellent at 26.5%. 2024 is off to a great start as we successfully executed on our 1/1 results, where we enjoyed strong growth has deployed the remaining capital from our 1.5 billion equity raise last spring. We capitalized on our market position and prevailing conditions, growing in attractive lines of business with expected returns in excess of our financial targets, this was evidenced in particular by strong growth in our Property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: This drove annual operating earnings per share of $66.39, and an operating return on equity of 23.1%.

$6 39.

And an operating return on equity of 23, 1% the annualized <unk> or total shareholder return was excellent at 26, 5%.

Mark Kociancic: The annualized TSR or total shareholder return was excellent at 26.5%. 2024 is off to a great start as we successfully executed on our 1/1 results, where we enjoyed strong growth has deployed the remaining capital from our 1.5 billion equity raise last spring. We capitalized on our market position and prevailing conditions, growing in attractive lines of business with expected returns in excess of our financial targets, this was evidenced in particular by strong growth in our Property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

24 is off to a great start as we successfully executed on our one one renewals where we enjoyed strong growth in deployed the remaining capital from our one 5 billion equity raise last spring.

Juan C. Andrade: We capitalized on our market position and prevailing conditions growing in attractive lines of business with expected returns in excess of our financial targets. This was evidenced in particular by strong growth in our property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024. This positions us well for profitable organic growth. Turning to the fourth quarter results operating income was $1 1 billion or $25.18 per diluted share equate. Equating to an operating ROE of 32, 4%. Looking at the group results Everest reported gross written premiums of $4 3 billion, representing 18, 3% growth in constant dollars and excluding reinstatement premiums. Combined ratio was 93, 2% for the quarter driven by our improving underlying loss ratios offset part of the results of an active cat quarter. Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in archipelago, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% of <unk>. 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. Group's commission ratio was 21, 3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business and improvement year over year. The group expense ratio was six 3% in the quarter an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance. Reinsurance gross written premiums grew 21, 9% in constant dollars when adjusting for reinstatement premiums during the quarter. The strong growth was primarily driven by double digit increases in property pro rata property non cat ex ol and property cat ex oil and was broad based globally. The combined ratio was 78, 8% an improvement of eight points from the prior year. The attritional loss ratio improved 40 basis points to 57, 8%. As we continue to achieve more favorable rate and terms, particularly in property. The Attritional combined ratio improved 90 basis points to 85, 1% when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter.

Mark Kociancic: We capitalized on our market position and prevailing conditions, growing in attractive lines of business with expected returns in excess of our financial targets, this was evidenced in particular by strong growth in our Property Cat book globally. Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

We capitalized on our market position and prevailing conditions growing in attractive lines of business with expected returns in excess of our financial targets.

Matt Rowland: This was evidenced in particular by strong growth in our property Cat book globally.

Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent.

Mark Kociancic: Market fundamentals remain strong and we expect the upcoming renewals throughout 2024 to continue to be excellent. Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024, this positions us well for profitable organic growth. Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Our underwriting franchises are fully mobilized and our capital strength gives us lots of capacity for 2024.

This positions us well for profitable organic growth.

Mark Kociancic: Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%. Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: Turning to the fourth quarter results, operating income was $1.1 billion or $25.18 per diluted share, equating to an operating ROE of 32.4%.

Turning to the fourth quarter results operating income was $1 1 billion or $25.18 per diluted share equate.

Equating to an operating ROE of 32, 4%.

Mark Kociancic: Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums. The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: Looking at the group results, Everest reported gross written premiums of $4.3 billion, representing 18.3% growth in constant dollars and excluding reinstatement premiums.

Matt Rowland: Looking at the group results Everest reported gross written premiums of $4 3 billion, representing 18, 3% growth in constant dollars and excluding reinstatement premiums.

Mark Kociancic: The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter. In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: The combined ratio was 93,2% for the quarter, driven by our improving underlying loss ratios offset by the results of an active Cat quarter.

Combined ratio was 93, 2% for the quarter driven by our improving underlying loss ratios offset part of the results of an active cat quarter.

Mark Kociancic: In the Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in Acapulco, Mexico as a category five hurricane. I would note that the prior year quarter had much lower than average Cat activity. Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Cat losses in the quarter were largely driven by hurricane Otis, which made landfall in archipelago, Mexico as a category five hurricane.

Matt Rowland: I would note that the prior year quarter had much lower than average cat activity.

Mark Kociancic: Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes. The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes.

Everest also recorded modest net favorable reserve development of $5 million in the quarter, which we'll discuss in more detail in just a few minutes.

Mark Kociancic: The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement. The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Mark Kociancic: The group Attritional loss ratio was 59% a 60 basis point improvement over the prior year's quarter with both segments contributing to the improvement.

The group Attritional loss ratio was 59% of <unk>.

60 basis point improvement over the prior year's quarter with both segments contributing to the improvement.

Mark Kociancic: The group's commission ratio was 21.3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business an improvement year over year. The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

Group's commission ratio was 21, 3% when excluding the impact of two and a half points from the profit commissions associated with favorable reserve development in the reinsurance segment related to the mortgage business and improvement year over year.

Mark Kociancic: The group expense ratio was 6.3% in the quarter, an excellent result, as we continue to invest in talent and systems within both franchises. Moving to the segment results and starting with reinsurance.

The group expense ratio was six 3% in the quarter an excellent result, as we continue to invest in talent and systems within both franchises.

Moving to the segment results and starting with reinsurance.

Reinsurance gross written premiums grew 21, 9% in constant dollars when adjusting for reinstatement premiums during the quarter.

Juan C. Andrade: Reinsurance gross written premiums grew 21, 9% in constant dollars when adjusting for reinstatement premiums during the quarter. The strong growth was primarily driven by double digit increases in property pro rata property non cat ex ol and property cat ex oil and was broad based globally. The combined ratio was 78, 8% an improvement of eight points from the prior year. The attritional loss ratio improved 40 basis points to 57, 8%. As we continue to achieve more favorable rate and terms, particularly in property. The Attritional combined ratio improved 90 basis points to 85, 1% when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter. The normalized commission ratio was 24, 8% when you exclude the three 6% attributed to those profit commissions. The underwriting related expense ratio was two 5% an improvement of 30 basis points from the prior year. Moving to insurance gross premiums written grew 11, 6% in constant dollars to $1 4 billion. We continue to methodically scale, our primary refranchising globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases. Number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto. Just on prior calls. The attritional loss ratio improved this quarter to 62, 6% driven primarily by business mix given the higher proportion of short tail lines within the portfolio. Commission ratio improved 110 basis points. Also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16, 6% with the increase largely driven by the continued investment in our global platform now. Now, let me touch on the reserve moves in the quarter. As we stated at our Investor Day, our objective is to book the company's overall reserve position at management's best estimate plus a margin.

Juan C. Andrade: Reinsurance gross written premiums grew 21.9% in constant dollars when adjusting for reinstatement premiums during the quarter. The strong growth was primarily driven by double digit increases in property Pro-Rata, property Non-Cat XOL, and Property Cat XOL, and was broad based globally. The combined ratio was 78.8% an improvement of eight points from the prior year, the attritional loss ratio improved 40 basis points to 57.8%, as we continue to achieve more favorable rate and terms, particularly in property. The Attritional combined ratio improved 90 basis points to 85.1%, when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter. The normalized commission ratio was 24.8% when you exclude the 3.6% attributed to those profit commissions, the underwriting related expense ratio was 2.5% an improvement of 30 basis points from the prior year. Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: Reinsurance gross written premiums grew 21.9% in constant dollars when adjusting for reinstatement premiums during the quarter.

Matt Rowland: The strong growth was primarily driven by double digit increases in property pro rata property non cat ex ol and property cat ex oil and was broad based globally.

Juan C. Andrade: The strong growth was primarily driven by double digit increases in property Pro-Rata, property Non-Cat XOL, and Property Cat XOL, and was broad based globally. The combined ratio was 78.8% an improvement of eight points from the prior year, the attritional loss ratio improved 40 basis points to 57.8%, as we continue to achieve more favorable rate and terms, particularly in property. The Attritional combined ratio improved 90 basis points to 85.1%, when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter. The normalized commission ratio was 24.8% when you exclude the 3.6% attributed to those profit commissions, the underwriting related expense ratio was 2.5% an improvement of 30 basis points from the prior year. Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: The strong growth was primarily driven by double digit increases in property Pro-Rata, property Non-Cat XOL, and Property Cat XOL, and was broad based globally.

The combined ratio was 78, 8% an improvement of eight points from the prior year.

Juan C. Andrade: The combined ratio was 78.8% an improvement of eight points from the prior year, the attritional loss ratio improved 40 basis points to 57.8%, as we continue to achieve more favorable rate and terms, particularly in property. The Attritional combined ratio improved 90 basis points to 85.1%, when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter. The normalized commission ratio was 24.8% when you exclude the 3.6% attributed to those profit commissions, the underwriting related expense ratio was 2.5% an improvement of 30 basis points from the prior year. Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

The attritional loss ratio improved 40 basis points to 57, 8%.

As we continue to achieve more favorable rate and terms, particularly in property.

The Attritional combined ratio improved 90 basis points to 85, 1% when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter.

Juan C. Andrade: The Attritional combined ratio improved 90 basis points to 85.1%, when excluding the impact of $94 million in profit commissions associated with favorable mortgage reserve development this quarter. The normalized commission ratio was 24.8% when you exclude the 3.6% attributed to those profit commissions, the underwriting related expense ratio was 2.5% an improvement of 30 basis points from the prior year. Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: The normalized commission ratio was 24.8% when you exclude the 3.6% attributed to those profit commissions, the underwriting related expense ratio was 2.5% an improvement of 30 basis points from the prior year. Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

The normalized commission ratio was 24, 8% when you exclude the three 6% attributed to those profit commissions.

The underwriting related expense ratio was two 5% an improvement of 30 basis points from the prior year.

Juan C. Andrade: Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion. We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: Moving to insurance, gross premiums written grew 11.6% in constant dollars to $1.4 billion.

Moving to insurance gross premiums written grew 11, 6% in constant dollars to $1 4 billion.

Juan C. Andrade: We continue to methodically scale, our primary franchise globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines. The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

We continue to methodically scale, our primary refranchising globally, while proactively focusing our north American portfolio towards the most accretive lines of business led by retail property and short tail specialty lines.

Juan C. Andrade: The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter. We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: The growth in casualty and professional lines was largely driven by rate increases, the number of casualty lines saw pricing accelerated in the fourth quarter.

The growth in casualty and professional lines was largely driven by rate increases.

Number of casualty lines saw pricing accelerated in the fourth quarter.

Juan C. Andrade: We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls. The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto as we've discussed on prior calls.

We remain disciplined in our approach of some lines are less attractive than others, including D&O workers' comp and commercial auto.

Juan C. Andrade: The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio. The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: The attritional loss ratio improved this quarter to 62.6% driven primarily by business mix, given the higher proportion of short tail lines within the portfolio.

Just on prior calls.

The attritional loss ratio improved this quarter to 62, 6% driven primarily by business mix given the higher proportion of short tail lines within the portfolio.

Juan C. Andrade: The commission ratio improved 110 basis points, also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions. The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Commission ratio improved 110 basis points.

Also largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions.

Juan C. Andrade: The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform. Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: The underwriting related expense ratio was 16.6% with the increase largely driven by the continued investment in our global platform.

Matt Rowland: The underwriting related expense ratio was 16, 6% with the increase largely driven by the continued investment in our global platform now.

Juan C. Andrade: Now, let me touch on the reserve moves in the quarter.

Speaker Change: Now, let me touch on the reserve moves in the quarter.

Juan C. Andrade: As we stated at our Investor Day, our objective is to book the company's overall reserve position at management's best estimate plus a margin. And as of year end, we've accomplished that as our reserve position remains strong. This quarter, we recognized $5 million of net favorable reserves development. Following the completion of our detailed ground up review of all of our reserve portfolio is for 2023. We released 397 million net of our embedded reserve margin from the reinsurance division, primarily from well seasoned short tail lines like property and also our mortgage lines. The releases were split roughly evenly between the two lines. And this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business. The entire industry faces the real impact of social inflation focused on the 2016 to 2019 accident years. Everest is seeing some of these same trends and we've prudently acted on them given the now well developed loss patterns for those years. This is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability and this is contrast, it with accident years 2015 in Pryor, which continue to show strength and stability and more recent accident years, namely. 2020, and onward, where we see the benefit of significant rate increases limit reductions in targeted portfolio management actions as one highlighted. We will be prudent and long tail reserves from those more recent accident years from 2020 onwards continue to season more fully. As a result of these comprehensive actions the portfolio today is of higher quality more diversified book of business well positioned to provide strong risk adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years. These adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving underwriting and claims functions and this allows us to improve the efficiency and effectiveness silver feedback loop between underwriting management claims pricing and reserving. This allows us to manage information faster improving overall portfolio performance. We have been embedding conservatism into social inflation prone lines in both divisions to make sure. We can manage these types of industry hurdles.

Juan C. Andrade: As we stated at our Investor Day, our objective is to book the company's overall reserve position at management's best estimate plus a margin, and as of year end, we've accomplished that, as our reserve position remains strong. This quarter, we recognized $5 million of net favorable reserves development, following the completion of our detailed ground up review of all of our reserve portfolios for 2023. We released 397 million net of our embedded reserve margins from the reinsurance division, primarily from well seasoned short tail lines like property and also our mortgage lines. The releases were split roughly evenly between the two lines, and this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business. The entire industry faces the real impact of social inflation, focused on the 2016 to 2019 accident years, and Everest is seeing some of these same trends and we've prudently acted on them, given the now well developed loss patterns for those years, and this is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability. And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

As we stated at our Investor Day, our objective is to book the company's overall reserve position at management's best estimate plus a margin.

And as of year end, we've accomplished that as our reserve position remains strong.

Speaker Change: This quarter, we recognized $5 million of net favorable reserves development. Following the completion of our detailed ground up review of all of our reserve portfolio is for 2023.

Juan C. Andrade: This quarter, we recognized $5 million of net favorable reserves development, following the completion of our detailed ground up review of all of our reserve portfolios for 2023. We released 397 million net of our embedded reserve margins from the reinsurance division, primarily from well seasoned short tail lines like property and also our mortgage lines. The releases were split roughly evenly between the two lines, and this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business. The entire industry faces the real impact of social inflation, focused on the 2016 to 2019 accident years, and Everest is seeing some of these same trends and we've prudently acted on them, given the now well developed loss patterns for those years, and this is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability. And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

Juan C. Andrade: This quarter, we recognized $5 million of net favorable reserves development, following the completion of our detailed ground up review of all of our reserve portfolios for 2023.

We released 397 million net of our embedded reserve margin from the reinsurance division, primarily from well seasoned short tail lines like property and also our mortgage lines. The releases were split roughly evenly between the two lines.

Juan C. Andrade: We released 397 million net of our embedded reserve margins from the reinsurance division, primarily from well seasoned short tail lines like property and also our mortgage lines. The releases were split roughly evenly between the two lines, and this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business. The entire industry faces the real impact of social inflation, focused on the 2016 to 2019 accident years, and Everest is seeing some of these same trends and we've prudently acted on them, given the now well developed loss patterns for those years, and this is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability. And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

Juan C. Andrade: The releases were split roughly evenly between the two lines, and this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business. The entire industry faces the real impact of social inflation, focused on the 2016 to 2019 accident years, and Everest is seeing some of these same trends and we've prudently acted on them, given the now well developed loss patterns for those years, and this is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability. And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

And this was partially offset by $392 million of strengthening in the insurance segment driven by a few specific casualty lines of business.

The entire industry faces the real impact of social inflation focused on the 2016 to 2019 accident years.

Juan C. Andrade: The entire industry faces the real impact of social inflation, focused on the 2016 to 2019 accident years, and Everest is seeing some of these same trends and we've prudently acted on them, given the now well developed loss patterns for those years, and this is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability. And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

Everest is seeing some of these same trends and we've prudently acted on them given the now well developed loss patterns for those years.

This is driven primarily by higher severity in general liability and to a lesser extent commercial auto liability and this is contrast, it with accident years 2015 in Pryor, which continue to show strength and stability and more recent accident years, namely.

Juan C. Andrade: And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years. Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

Juan C. Andrade: And this is contrasted with accident years 2015 and Prior, which continue to show strength and stability and more recent accident years.

2020, and onward, where we see the benefit of significant rate increases limit reductions in targeted portfolio management actions as one highlighted.

Juan C. Andrade: Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted. We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

Juan C. Andrade: Namely 2020 and onward, where we see the benefit of significant rate increases, limit reductions and targeted portfolio management actions as Juan highlighted.

Speaker Change: We will be prudent and long tail reserves from those more recent accident years from 2020 onwards continue to season more fully.

Juan C. Andrade: We will be prudent and let long tail reserves from those more recent accident years, from 2020 onwards, continue to season more fully, as a result of these comprehensive actions the portfolio today is a higher quality, more diversified book of business, well positioned to provide strong risk-adjusted returns. In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

As a result of these comprehensive actions the portfolio today is of higher quality more diversified book of business well positioned to provide strong risk adjusted returns.

In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years.

Juan C. Andrade: In terms of the reinsurance division, we made marginal adjustments to long tail lines that were impacted by social inflation from 2016 to 2019 accident years, and these adjustments were easily offset by favorable developments in other lines. Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

These adjustments were easily offset by favorable developments in other lines.

Since this management team took over in 2020, we have made significant improvements to our reserving underwriting and claims functions and this allows us to improve the efficiency and effectiveness silver feedback loop between underwriting management claims pricing and reserving.

Juan C. Andrade: Since this management team took over in 2020, we have made significant improvements to our reserving, underwriting and claims functions, and this allows us to improve the efficiency and effectiveness of our feedback loop between underwriting, management, claims, pricing and reserving. This allows us to manage information faster, improving overall portfolio performance.

This allows us to manage information faster improving overall portfolio performance.

Juan C. Andrade: This allows us to manage information faster, improving overall portfolio performance.

Juan C. Andrade: We have been embedding conservatism into social inflation prone lines in both divisions to make sure. We can manage these types of industry hurdles. In conjunction the actions taken to build the company's balance sheet strengths Everest has significant financial flexibility underwriting diversification and the ability to better manage volatility. We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet. As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall. Given our disciplined approach to acting on bad news early and good news late we feel our reserve position is prudent and there is meaningful embedded margin that we will let season, we believe the balance sheet moves. We made this quarter have closed the book on the 2016. 2019 reserves. And put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over 200 million year over year to $411 million for the quarter, driven primarily by higher assets under management. New money yields and our investment in floating rate securities as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from three 5% to four 7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position, our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3 $3 billion of market value in Q4, which resulted in after tax realized fixed income losses. Approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter. And is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to three three years, which is broadly consistent. With our liability duration of three nine years. For the fourth quarter of 2023, our operating income tax rate before the Bermuda taxing impact was 14, 5%, which was higher than our working assumption over 11% to 12% for the year given the geographic distribution of income.

Juan C. Andrade: We have been embedding conservatism into social inflation prone lines, in both divisions to make sure we can manage these types of industry hurdles. In conjunction the actions taken to build the company's balance sheet strengths Everest has significant financial flexibility, underwriting diversification, and the ability to better manage volatility. We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet. As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall. Given our disciplined approach to acting on bad news early and good news late, we feel our reserve position is prudent and there is meaningful embedded margin that we will let season. We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: We have been embedding conservatism into social inflation prone lines, in both divisions to make sure we can manage these types of industry hurdles.

We have been embedding conservatism into social inflation prone lines in both divisions to make sure. We can manage these types of industry hurdles.

Juan C. Andrade: In conjunction the actions taken to build the company's balance sheet strengths Everest has significant financial flexibility, underwriting diversification, and the ability to better manage volatility. We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet. As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall. Given our disciplined approach to acting on bad news early and good news late, we feel our reserve position is prudent and there is meaningful embedded margin that we will let season. We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

In conjunction the actions taken to build the company's balance sheet strengths Everest has significant financial flexibility underwriting diversification and the ability to better manage volatility.

Juan C. Andrade: We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet. As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall. Given our disciplined approach to acting on bad news early and good news late, we feel our reserve position is prudent and there is meaningful embedded margin that we will let season. We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet.

Speaker Change: We were able to generate an operating ROE of over 23%, while taking actions to fortify the reserves on our balance sheet.

Juan C. Andrade: As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall. Given our disciplined approach to acting on bad news early and good news late, we feel our reserve position is prudent and there is meaningful embedded margin that we will let season. We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall.

Speaker Change: As you can see from our full year 2023 results, we can manage issues as they arise and still produce excellent returns overall.

Given our disciplined approach to acting on bad news early and good news late we feel our reserve position is prudent and there is meaningful embedded margin that we will let season, we believe the balance sheet moves. We made this quarter have closed the book on the 2016.

Juan C. Andrade: Given our disciplined approach to acting on bad news early and good news late, we feel our reserve position is prudent and there is meaningful embedded margin that we will let season. We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: We believe the balance sheet moves we made this quarter have closed the book on the 2016 to 2019 reserves, and put us in very good shape to generate leading returns in the years ahead. Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

2019 reserves.

And put us in very good shape to generate leading returns in the years ahead.

Moving on net investment income increased over 200 million year over year to $411 million for the quarter, driven primarily by higher assets under management.

Juan C. Andrade: Moving on net investment income increased over $200 million year over year, to $411 million for the quarter, driven primarily by higher assets under management, higher new money yields and our investment in floating rate securities, as they benefit from higher reset rates. Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

New money yields and our investment in floating rate securities as they benefit from higher reset rates.

Alternative assets generated $41 million of net investment income an improvement from the prior year as equity markets have continued to rebound.

Juan C. Andrade: Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound. Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: Alternative assets generated $41 million of net investment income, an improvement from the prior year as equity markets have continued to rebound.

Speaker Change: Overall, our book yield improved from three 5% to four 7% year over year.

Juan C. Andrade: Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%. We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: Overall, our book yield improved from 3.5% to 4.7% year over year. And our reinvestment rate remains at approximately 5%.

And our reinvestment rate remains at approximately 5%.

We continue to take deliberate actions to best position, our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment.

Juan C. Andrade: We continue to take deliberate actions to best position our investment portfolio and capitalize on market conditions, we made a number of portfolio moves over the past quarter to take advantage of the evolving interest rate environment. We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

We successfully executed our strategy to sell lower yielding bonds totaling $3 $3 billion of market value in Q4, which resulted in after tax realized fixed income losses.

Juan C. Andrade: We successfully executed our strategy to sell lower yielding bonds totaling $3.3 billion of market value in Q4, which resulted in after tax realized fixed income losses of approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality. And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Approximately $210 million in the quarter, while reinvesting the proceeds into higher coupon bonds with higher credit quality.

Speaker Change: And this contributed approximately 30 basis points to the book yield increase in the quarter.

Juan C. Andrade: And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond. We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

Juan C. Andrade: And this contributed approximately 30 basis points to the book yield increase in the quarter, and is expected to add significant additional interest income in 2024 and beyond.

And is expected to add significant additional interest income in 2024 and beyond.

We generally purchase 10 year maturities, thereby extending our duration modestly to three three years, which is broadly consistent.

Juan C. Andrade: We generally purchase 10 year maturities, thereby extending our duration modestly to 3.3 years, which is broadly consistent with our liability duration of 3.9 years.

With our liability duration of three nine years.

Juan C. Andrade: For the fourth quarter of 2023, our operating income tax rate before the Bermuda taxing impact was 14, 5%, which was higher than our working assumption over 11% to 12% for the year given the geographic distribution of income. However, the full year operating effective tax rate, excluding the Bermuda tax impact was 10, 5% well within our expected range. Everest also booked a $578 million not deferred tax benefit in the quarter as a result of Bermuda's income tax guidelines and. And this will begin to be utilized in 2025, when the permute income tax is in effect. Shareholders equity ended the quarter at $13 2 billion or $13 9 billion when excluding net unrealized depreciation on available for sale fixed income securities. At the end of the quarter net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million a. A decrease of $1 1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4 6 billion for the full year books. Book value per share ended the quarter at $304 29, an improvement. <unk> of 44, 3% from year end 2022, when adjusted for dividends of $6 80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320 95. Versus $259 18 per share at year end 2022, representing an increase of approximately 23, 8%. This is an outstanding result, and shows the value creation from 2023. Net debt leverage at quarter end stood at 16, 3% modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our cat bond reliance at year end 2023. As we seek to retain more of the gross and net economics. In lines of business with exceptional risk adjusted return potential. So while our mills have gone up in the tail with the cat bonds Rolling off we remain well within the risk tolerances of our pre defined risk appetite as well as having ample room for additional organic growth. In addition, Everest had an excellent fourth quarter and year in 2023, we begin 2024 with a strong set of renewals plenty of dry powder for future renewals.

Juan C. Andrade: For the fourth quarter of 2023, our operating income tax rate before the Bermuda taxing impact was 14.5%, which was higher than our working assumption of 11% to 12% for the year given the geographic distribution of income. However, the full year operating effective tax rate, excluding the Bermuda tax impact, was 10.5% well within our expected range. Everest also booked a $578 million dollars net deferred tax benefit in the quarter as a result of Bermuda's income tax guidelines, and this will begin to be utilized in 2025, when the Bermuda's income tax is in effect. Shareholders equity ended the quarter at $13.2 billion, or $13.9 billion when excluding net unrealized depreciation on available, for sale fixed income securities. At the end of the quarter, net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million, a decrease of $1.1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

For the fourth quarter of 2023, our operating income tax rate before the Bermuda taxing impact was 14, 5%, which was higher than our working assumption over 11% to 12% for the year given the geographic distribution of income.

Juan C. Andrade: However, the full year operating effective tax rate, excluding the Bermuda tax impact, was 10.5% well within our expected range. Everest also booked a $578 million dollars net deferred tax benefit in the quarter as a result of Bermuda's income tax guidelines, and this will begin to be utilized in 2025, when the Bermuda's income tax is in effect. Shareholders equity ended the quarter at $13.2 billion, or $13.9 billion when excluding net unrealized depreciation on available, for sale fixed income securities. At the end of the quarter, net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million, a decrease of $1.1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Juan C. Andrade: However, the full year operating effective tax rate, excluding the Bermuda tax impact, was 10.5% well within our expected range.

However, the full year operating effective tax rate, excluding the Bermuda tax impact was 10, 5% well within our expected range.

Juan C. Andrade: Everest also booked a $578 million dollars net deferred tax benefit in the quarter as a result of Bermuda's income tax guidelines, and this will begin to be utilized in 2025, when the Bermuda's income tax is in effect. Shareholders equity ended the quarter at $13.2 billion, or $13.9 billion when excluding net unrealized depreciation on available, for sale fixed income securities. At the end of the quarter, net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million, a decrease of $1.1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Everest also booked a $578 million not deferred tax benefit in the quarter as a result of Bermuda's income tax guidelines and.

Speaker Change: And this will begin to be utilized in 2025, when the permute income tax is in effect.

Juan C. Andrade: Shareholders equity ended the quarter at $13.2 billion, or $13.9 billion when excluding net unrealized depreciation on available, for sale fixed income securities. At the end of the quarter, net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million, a decrease of $1.1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Juan C. Andrade: Shareholders equity ended the quarter at $13.2 billion, or $13.9 billion when excluding net unrealized depreciation on available, for sale fixed income securities.

Shareholders equity ended the quarter at $13 2 billion or $13 9 billion when excluding net unrealized depreciation on available for sale fixed income securities.

Juan C. Andrade: At the end of the quarter, net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million, a decrease of $1.1 billion as compared to the end of the third quarter, resulting from interest rate decreases. Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

At the end of the quarter net after tax unrealized losses on the available for sale fixed income portfolio equates to approximately $723 million a.

A decrease of $1 1 billion as compared to the end of the third quarter, resulting from interest rate decreases.

Juan C. Andrade: Cash flow from operations was 1 billion during the quarter and $4.6 billion for the full year, books value per share ended the quarter at $304.29 an improvement of 44.3% from year end 2022, when adjusted for dividends of $6.80 per share year to date. Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Cash flow from operations was 1 billion during the quarter and $4 6 billion for the full year books.

Book value per share ended the quarter at $304 29, an improvement.

<unk> of 44, 3% from year end 2022, when adjusted for dividends of $6 80 per share year to date.

Juan C. Andrade: Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320.95, versus $259.18 per share at year end 2022, representing an increase of approximately 23.8%. This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Book value per share, excluding net unrealized depreciation on available for sale fixed income securities stood at $320 95.

Versus $259 18 per share at year end 2022, representing an increase of approximately 23, 8%.

Juan C. Andrade: This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis. As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Juan C. Andrade: This is an outstanding result, and shows the value creation for 2023. Net debt leverage at quarter end stood at 16.3%, modestly lower on a sequential and year over year basis.

This is an outstanding result, and shows the value creation from 2023.

Speaker Change: Net debt leverage at quarter end stood at 16, 3% modestly lower on a sequential and year over year basis.

Juan C. Andrade: As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio, throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities. Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Speaker Change: As mentioned earlier, our capital raise back in May coupled with the organic capital generation of our portfolio throughout the year put us in a position of strength to be able to capitalize on a number of market opportunities.

Juan C. Andrade: Another tangible example of this was our ability to reduce our Cat bond reliance at year end 2023, as we seek to retain more of the gross and net economics in lines of business with exceptional risk adjusted return potential. So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

Speaker Change: Another tangible example of this was our ability to reduce our cat bond reliance at year end 2023.

Speaker Change: As we seek to retain more of the gross and net economics.

Speaker Change: In lines of business with exceptional risk adjusted return potential.

Juan C. Andrade: So while our PMLs have gone up in the tail with the Cat bonds Rolling off, we remain well within the risk tolerances of our pre-defined risk appetite, as well as having ample room for additional organic growth.

So while our mills have gone up in the tail with the cat bonds Rolling off we remain well within the risk tolerances of our pre defined risk appetite as well as having ample room for additional organic growth.

Juan C. Andrade: In addition, Everest had an excellent fourth quarter and year in 2023, we begin 2024 with a strong set of renewals, plenty of dry powder for future renewals, and attractive organic growth opportunities in both of our underwriting franchises. Our teams are fully mobilized to serve their markets, we have substantial flexibility and strong momentum across both businesses, leaving us very confident in our ability to deliver on the total shareholder return and combined ratio targets we introduced at our most recent investor day. And with that, I'll turn the call back over to Matt.

In addition, Everest had an excellent fourth quarter and year in 2023, we begin 2024 with a strong set of renewals plenty of dry powder for future renewals.

And attractive organic growth opportunities in both of our underwriting franchises.

Juan C. Andrade: Our teams are fully mobilized to serve their markets, we have substantial flexibility and strong momentum across both businesses, leaving us very confident in our ability to deliver on the total shareholder return and combined ratio targets we introduced at our most recent investor day. And with that, I'll turn the call back over to Matt.

Our teams are fully mobilized to serve their markets, we have substantial flexibility and strong momentum across both businesses, leaving us very confident in our ability to deliver on the total shareholder return and combined ratio targets. We introduced at our most recent investor day.

Juan C. Andrade: And with that, I'll turn the call back over to Matt.

And with that I'll turn the call back over to Matt.

Operator: Thanks, Mark operator, we're now ready to open the line for questions. We do ask that you. Please limit your questions to one question with one follow up and rejoin the queue. If you have additional questions. Thank you. Ask a question. Please press Star then one on your telephone keypad. If you are using a speaker phone. Please pick up your handset before pressing the keys. So it's always a question. Please press Star then two. Today's first question comes from your own Kumar with Jefferies. Please go ahead.

Matt Rowland: Thanks Mark. Operator, we're now ready to open the line for questions. We do ask that you to please limit your questions to one question, with one follow up and rejoin the queue if you have additional questions.

Matt Rowland: Thanks Mark. Operator, we're now ready to open the line for questions.

Matt Rowland: We do ask that you to please limit your questions to one question, with one follow up and rejoin the queue if you have additional questions.

Operator: We do ask that you. Please limit your questions to one question with one follow up and rejoin the queue. If you have additional questions. Thank you. Ask a question. Please press Star then one on your telephone keypad. If you are using a speaker phone. Please pick up your handset before pressing the keys. So it's always a question. Please press Star then two. Today's first question comes from your own Kumar with Jefferies. Please go ahead.

Operator: We do ask that you. Please limit your questions to one question with one follow up and rejoin the queue. If you have additional questions.

Mark: Thank you.

Speaker Change: Ask a question. Please press Star then one on your telephone keypad.

Operator: Thank you. To ask a question, please press star then one on your telephone keypad. If you are using a speaker phone we ask you to please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Today's first question comes from Yaron Kinar with Jefferies. Please go ahead.

Operator: Thank you. To ask a question, please press star then one on your telephone keypad. If you are using a speaker phone we ask you to please pick up your handset before pressing the keys.

Speaker Change: If you are using a speaker phone.

Please pick up your handset before pressing the keys.

So it's always a question. Please press Star then two.

Operator: To withdraw your question, please press star then two. Today's first question comes from Yaron Kinar with Jefferies. Please go ahead.

Speaker Change: Today's first question comes from your own Kumar with Jefferies. Please go ahead.

Yaron Kinar: Good morning, thanks for taking my questions. I wanted to start with the reserve strengthening in insurance, and I appreciate the color that you offered there in the prepared comments. But that said, it seems like there may be a little bit of a break with the messaging we've heard in prior quarters, namely that the company was already, had already strengthened reserves considerably back in 2021. It's kept loss picks conservatively high since then, so what's changed from that perspective now? And how can investors gain comfort or confidence that we're not going to see some similar pattern emerge in the reinsurance reserves?

I wanted to start with the reserve strengthening in insurance and I appreciate the.

The color that you offered that in the prepared comments.

But that said it seems like there may be a little bit of a break with the messaging we heard in prior quarters, namely that the company was already.

Yaron Kinar: But that said, it seems like there may be a little bit of a break with the messaging we've heard in prior quarters, namely that the company was already, had already strengthened reserves considerably back in 2021. It's kept loss picks conservatively high since then, so what's changed from that perspective now? And how can investors gain comfort or confidence that we're not going to see some similar pattern emerge in the reinsurance reserves?

<unk> had already strengthened reserves considerably back in that 2021.

It's kept loss picks conservatively high since then.

Yaron Kinar: It's kept loss picks conservatively high since then, so what's changed from that perspective now? And how can investors gain comfort or confidence that we're not going to see some similar pattern emerge in the reinsurance reserves?

What's changed from that perspective, now and how can investors gain comfort or confidence that we're not going to see.

Some similar pattern emerge in the reinsurance reserves.

Mark Kociancic: Well good morning Yaron, it's Mark here, so let me let me address that. I think, look 2016 to 19, clearly is impacted by social inflation and there was a very marked rise and actual losses during the 2023 calendar year. And those years that are exposed to social inflation casualty in particular really showed signs of development for 2016 to 19, so we're seeing a reported loss patterns that are very seasoned, very mature, and the trends are undeniable. So for us the issue really lies primarily in general liability, and from that standpoint, we believe we've captured it simply because these reporting patterns are fairly well developed. The losses are on an actual basis now to a larger degree, and so theres less estimate involved, more precision in how we're able to size that class or period of business and so we feel pretty good about the fact that we're able to put this to bed. In addition to that this is the one in dry look I would say that there is no change in the messaging from our perspective, we have been very consistent in the fact that we have a strong overall reserve position. We are confident in the most current years, you're right. We have raced inflation assumptions. We've raised our initial loss fix we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks. This morning. So we feel very confident about that and I think as Mark said in his prepared remarks, we believe. This closest to bolt onto 2016 to 2019 years. Okay. Thank you. And then maybe pivoting a bit to the current accident in your current calendar. Calendar year end and reinsurance the underlying loss ratio. It did improve year over year, but the improvement actually subsided relative to what we saw earlier in the year. The first nine months and intuitively I would have thought that we'd see that improve and accelerate just as the change in terms and conditions and better rates that you implemented starting on one 123 would be earning and so can you maybe address. Were there any offsets there or anything I'm not thinking about correctly.

Mark Kociancic: Well good morning Yaron, it's Mark here, so let me let me address that.

Mark: Look 2016 to 19, clearly is impacted by social inflation and there was a very marked a rise in actual losses during the 2023.

Mark Kociancic: I think, look 2016 to 19, clearly is impacted by social inflation and there was a very marked rise and actual losses during the 2023 calendar year. And those years that are exposed to social inflation casualty in particular really showed signs of development for 2016 to 19, so we're seeing a reported loss patterns that are very seasoned, very mature, and the trends are undeniable. So for us the issue really lies primarily in general liability, and from that standpoint, we believe we've captured it simply because these reporting patterns are fairly well developed. The losses are on an actual basis now to a larger degree, and so theres less estimate involved, more precision in how we're able to size that class or period of business and so we feel pretty good about the fact that we're able to put this to bed.

Mark Kociancic: I think, look 2016 to 19, clearly is impacted by social inflation and there was a very marked rise and actual losses during the 2023 calendar year.

Mark: Calendar year in those years that are exposed to social inflation in casualty in particular.

Mark Kociancic: And those years that are exposed to social inflation casualty in particular really showed signs of development for 2016 to 19, so we're seeing a reported loss patterns that are very seasoned, very mature, and the trends are undeniable. So for us the issue really lies primarily in general liability, and from that standpoint, we believe we've captured it simply because these reporting patterns are fairly well developed. The losses are on an actual basis now to a larger degree, and so theres less estimate involved, more precision in how we're able to size that class or period of business and so we feel pretty good about the fact that we're able to put this to bed.

Really showed signs of.

Mark: Development for 2016 to 19, so we're seeing a reported loss patterns that are very seasoned very mature and the trends are undeniable. So for us. The issue really lies primarily in general liability.

Mark Kociancic: So for us the issue really lies primarily in general liability, and from that standpoint, we believe we've captured it simply because these reporting patterns are fairly well developed. The losses are on an actual basis now to a larger degree, and so theres less estimate involved, more precision in how we're able to size that class or period of business and so we feel pretty good about the fact that we're able to put this to bed.

Mark Kociancic: The losses are on an actual basis now to a larger degree, and so theres less estimate involved, more precision in how we're able to size that class or period of business and so we feel pretty good about the fact that we're able to put this to bed.

And from that standpoint, we believe we've captured it simply because these reporting patterns are fairly well developed.

The losses are on an actual basis now to a larger degree and so theres less estimate involved more precision and how we're able to size that.

Mark Kociancic: Yaron in addition to that, this is Juan Andrade, look I would say that there is no change in the messaging from our perspective. We have been very consistent in the fact that we have a strong overall reserve position. We are confident in the most current years, you're right, we have raised inflation assumptions, we've raised our initial loss fix, we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks this morning, so we feel very confident about that. And I think as Mark said in his prepared remarks, we believe this closest to book on the 2016 to 2019 years. Okay. Thank you. And then maybe pivoting a bit to the current accident in your current calendar. Calendar year end and reinsurance the underlying loss ratio. It did improve year over year, but the improvement actually subsided relative to what we saw earlier in the year. The first nine months and intuitively I would have thought that we'd see that improve and accelerate just as the change in terms and conditions and better rates that you implemented starting on one 123 would be earning and so can you maybe address. Were there any offsets there or anything I'm not thinking about correctly.

Juan C. Andrade: Yaron in addition to that, this is Juan Andrade, look I would say that there is no change in the messaging from our perspective. We have been very consistent in the fact that we have a strong overall reserve position. We are confident in the most current years, you're right, we have raised inflation assumptions, we've raised our initial loss fix, we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks this morning, so we feel very confident about that. And I think as Mark said in his prepared remarks, we believe this closest to book on the 2016 to 2019 years.

Juan C. Andrade: Yaron in addition to that, this is Juan Andrade, look I would say that there is no change in the messaging from our perspective.

Class a period of business and so we feel pretty good about the fact that we're able to put this to bed.

Juan C. Andrade: We have been very consistent in the fact that we have a strong overall reserve position. We are confident in the most current years, you're right, we have raised inflation assumptions, we've raised our initial loss fix, we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks this morning, so we feel very confident about that. And I think as Mark said in his prepared remarks, we believe this closest to book on the 2016 to 2019 years.

Juan C. Andrade: We have been very consistent in the fact that we have a strong overall reserve position.

Mark: In addition to that this is the one in dry look I would say that there is no change in the messaging from our perspective, we have been very consistent in the fact that we have a strong overall reserve position.

Juan C. Andrade: We are confident in the most current years, you're right, we have raised inflation assumptions, we've raised our initial loss fix, we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks this morning, so we feel very confident about that. And I think as Mark said in his prepared remarks, we believe this closest to book on the 2016 to 2019 years.

We are confident in the most current years, you're right. We have raced inflation assumptions. We've raised our initial loss fix we have pushed rate in excess of trend as well as a number of other things that I talked about in my remarks. This morning. So we feel very confident about that and I think as Mark said in his prepared remarks, we believe.

Juan C. Andrade: And I think as Mark said in his prepared remarks, we believe this closest to book on the 2016 to 2019 years.

This closest to bolt onto 2016 to 2019 years.

Yaron Kinar: Okay, thank you. And then maybe pivoting a bit to the current accident, your current calendar year. In reinsurance the underlying loss ratio, it did improve year over year, but the improvement actually subsided relative to what we saw earlier in the year, the first nine months. And intuitively, I would have thought that we'd see that improve and accelerate just as the change in terms and conditions, and better rates that you implemented starting on 1/1/23, would be earning, and so can you maybe address. Were there any offsets there or anything I'm not thinking about correctly?

Yaron Kinar: Okay, thank you.

Yaron Kinar: And then maybe pivoting a bit to the current accident, your current calendar year. In reinsurance the underlying loss ratio, it did improve year over year, but the improvement actually subsided relative to what we saw earlier in the year, the first nine months. And intuitively, I would have thought that we'd see that improve and accelerate just as the change in terms and conditions, and better rates that you implemented starting on 1/1/23, would be earning, and so can you maybe address. Were there any offsets there or anything I'm not thinking about correctly?

Okay. Thank you. And then maybe pivoting a bit to the current accident in your current calendar. Calendar year end and reinsurance the underlying loss ratio.

And then maybe pivoting a bit to the current accident in your current calendar.

Calendar year end and reinsurance the underlying loss ratio.

Mark: It did improve year over year, but the improvement actually subsided relative to what we saw earlier in the year. The first nine months and intuitively I would have thought that we'd see that improve and accelerate just as the change in terms and conditions and better rates that you implemented starting on one 123 would be earning and so can you maybe address.

Yaron Kinar: And intuitively, I would have thought that we'd see that improve and accelerate just as the change in terms and conditions, and better rates that you implemented starting on 1/1/23, would be earning, and so can you maybe address. Were there any offsets there or anything I'm not thinking about correctly?

Speaker Change: Were there any offsets there or anything I'm not thinking about correctly.

jim Williamson: Sure Yaron it's Jim Williamson, thanks for the question, so just to step back a little bit, our approach to establishing our quarterly loss ratios has been very consistent over the last few years, we set conservative loss picks as we enter the year. And then we don't tend to change them unless we see some bad news emerge, and so we do that at a very granular level, and so quarter to quarter, the only real effects you're going to see are mix related. So what we have seen is particularly on an earned premium basis, casualty is still greater than 50%.

Jim Williams: Thanks for the question, so just to step back a little bit or our approach to establishing our quarterly loss ratios has been very consistent over the last few years, we set conservative loss picks.

Jim Williams: As we enter the year and then we don't tend to change them unless we see some bad news emerge and so we do that at a very granular level and so quarter to quarter, the only real effects youre going to see our mix related.

jim Williamson: And then we don't tend to change them unless we see some bad news emerge, and so we do that at a very granular level, and so quarter to quarter, the only real effects you're going to see are mix related. So what we have seen is particularly on an earned premium basis, casualty is still greater than 50%.

Speaker Change: So what.

Speaker Change: What we have seen is particularly on an earned premium basis casualty is still greater than 50%.

jim Williamson: So what we have seen is particularly on an earned premium basis, casualty is still greater than 50%.

Operator: Oh pardon me, It appears we have lost the connection with our speakers, please standby. [Music] Pardon me everyone, we do have our speakers back and we will move onto our next question, which comes from Josh Shanker with Bank of America.

Speaker Change: Please standby.

Speaker Change: Yeah. Okay. Pardon me everyone. We do have our speakers, Doug and we will move onto our next question, which comes from Josh Shanker with Bank of America.

Speaker Change: Okay.

Speaker Change: Pardon me everyone. We do have our speakers, Doug and we will move onto our next question, which comes from Josh Shanker with Bank of America.

jim Williamson: Hold on I'm, sorry, just one minute let me, this is Jim Williamson, let me finish answering Yaron's question, sorry for the interruption there folks. So as I was saying, we did not take credit for the 1/1/23 property rate increases in our 2023 property attritional loss ratio, and we do that out of prudence, we keep that pretty consistent year to year. And then the last factor, the only thing that affected our fourth quarter reinsurance attritional loss ratio, was we did recognize the effect of two large property risk losses in the fourth quarter. And again out of Prudence, we bumped up our loss pick for those losses, that's about, that's worth about 60 basis points on the total reinsurance loss ratio. So that also masks some of the underlying improvement that you'd be seeing from us Yaron.

jim Williamson: Hold on I'm, sorry, just one minute let me, this is Jim Williamson, let me finish answering Yaron's question, sorry for the interruption there folks.

jim Williamson: So as I was saying, we did not take credit for the 1/1/23 property rate increases in our 2023 property attritional loss ratio, and we do that out of prudence, we keep that pretty consistent year to year. And then the last factor, the only thing that affected our fourth quarter reinsurance attritional loss ratio, was we did recognize the effect of two large property risk losses in the fourth quarter. And again out of Prudence, we bumped up our loss pick for those losses, that's about, that's worth about 60 basis points on the total reinsurance loss ratio. So that also masks some of the underlying improvement that you'd be seeing from us Yaron.

Speaker Change: We did not take credit for the 123 <unk>.

Speaker Change: Property rate increases in our 2023 property attritional loss ratio.

Speaker Change: And we do that out of Prudence, we keep that pretty consistent year to year and then the last factor the only thing that affected our fourth quarter reinsurance Attritional loss ratio was we did recognize the effect of two large property risk losses.

jim Williamson: And then the last factor, the only thing that affected our fourth quarter reinsurance attritional loss ratio, was we did recognize the effect of two large property risk losses in the fourth quarter. And again out of Prudence, we bumped up our loss pick for those losses, that's about, that's worth about 60 basis points on the total reinsurance loss ratio. So that also masks some of the underlying improvement that you'd be seeing from us Yaron.

jim Williamson: And again out of Prudence, we bumped up our loss pick for those losses, that's about, that's worth about 60 basis points on the total reinsurance loss ratio. So that also masks some of the underlying improvement that you'd be seeing from us Yaron.

Speaker Change: In the fourth quarter and again out of Prudence, we bumped up our loss pick for.

Speaker Change: For those losses, that's about that's worth about 60 basis points on the total reinsurance loss ratio. So that also masks some of the underlying improvement that you'd be seeing from us right.

Operator: Yeah. Thank you and our next question comes from Josh Shanker with Bank of America. Please go ahead.

Speaker Change: Thank you and our next question comes from Josh Shanker with Bank of America. Please go ahead.

Josh Shanker: Thank you. More questions about the insurance reserve charge of course, $392 million of net adverse development, principally related to 16 to 19 internal liability. But of course those are inflationary CAGRs that are being set correctly, which span into 2023, what was the gross amount of the inflationary impact on the loss reserves? I assume offset by [Inaudible] frequency related issues on the short tail lines in the '20 to '23 period. I guess what I'm getting at is, how much does reserves strengthened for inflationary issues on the later years?

Josh Shanker: Thank you. More questions about the insurance reserve charge of course, $392 million of net adverse development, principally related to 16 to 19 internal liability.

Josh Shanker: Principally related to 16 to 19 internal liability but of course those are inflationary CAGR is that are being set correctly, which span into 2000 22023, what was the gross amount of the inflationary impact on the loss reserves I assume offset by.

Josh Shanker: But of course those are inflationary CAGRs that are being set correctly, which span into 2023, what was the gross amount of the inflationary impact on the loss reserves? I assume offset by [Inaudible] frequency related issues on the short tail lines in the '20 to '23 period. I guess what I'm getting at is, how much does reserves strengthened for inflationary issues on the later years?

Josh Shanker: But of course those are inflationary CAGRs that are being set correctly, which span into 2023, what was the gross amount of the inflationary impact on the loss reserves?

Josh Shanker: I assume offset by [Inaudible] frequency related issues on the short tail lines in the '20 to '23 period. I guess what I'm getting at is, how much does reserves strengthened for inflationary issues on the later years?

Josh Shanker: For frequency related issues on the short tail lines in the 'twenty to 'twenty three period.

Speaker Change: That's what I'm getting at it.

Speaker Change: Much.

Speaker Change: The reserve strengthening for inflationary issues on those later years.

Mark Kociancic: Well virtually all of the strengthening took place in 2016 to 19 and that was really related to the inflationary pressure. Favorable development, we had some on the insurance side, with respect to worker's comp property and surety, but by and large we're dealing with more of an isolated issue from 16 to 19. When we look at 2020 to onwards for 2023, we feel good about the last picks that we've set and then the process that we follow there, so we've got a few points there. So I'll start with underlying rate thats been achieved on an annual basis, and even before social inflation became even more elevated we were increasing loss picks in 2020. And then there's the portfolio actions, really identifying the root cause of some of the general liability development that we've had, had not been acted upon. So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures. And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Mark Kociancic: Well virtually all of the strengthening took place in 2016 to 19 and that was really related to the inflationary pressure.

Speaker Change: Actually all of the strengthening took place in 2016 to 19 and that was really related to the <unk>.

Mark Kociancic: Favorable development, we had some on the insurance side, with respect to worker's comp property and surety, but by and large we're dealing with more of an isolated issue from 16 to 19. When we look at 2020 to onwards for 2023, we feel good about the last picks that we've set and then the process that we follow there, so we've got a few points there. So I'll start with underlying rate thats been achieved on an annual basis, and even before social inflation became even more elevated we were increasing loss picks in 2020. And then there's the portfolio actions, really identifying the root cause of some of the general liability development that we've had, had not been acted upon. So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures. And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Speaker Change: Inflationary pressure.

Speaker Change: Favorable development, we had some on the insurance side with respect to workers' comp.

Speaker Change: Property and surety book.

Speaker Change: By and large we're dealing with more of an isolated issue from 16 to 19, when we look at 2020 onwards for 2023.

Speaker Change: We feel good about velocity picks that we've set and then the process that we follow there. So we've got we've got a few points. There. So I'll start with underlying rate thats been achieved on an annual basis and even before social inflation became even more elevated we were increasing loss picks in 2012.

Mark Kociancic: So I'll start with underlying rate thats been achieved on an annual basis, and even before social inflation became even more elevated we were increasing loss picks in 2020. And then there's the portfolio actions, really identifying the root cause of some of the general liability development that we've had, had not been acted upon. So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures. And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Mark Kociancic: So I'll start with underlying rate thats been achieved on an annual basis, and even before social inflation became even more elevated we were increasing loss picks in 2020.

Speaker Change: <unk>.

Mark Kociancic: And then there's the portfolio actions, really identifying the root cause of some of the general liability development that we've had, had not been acted upon. So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures. And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Mark Kociancic: And then there's the portfolio actions, really identifying the root cause of some of the general liability development that we've had, had not been acted upon.

Speaker Change: And then there's the portfolio actions really identifying the root cause of some of the general liability development that we've had it not been acted upon so the loss picks from 2020 to 2023 Ive reflected proper amount for the social inflation risk and we feel.

Mark Kociancic: So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures. And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Mark Kociancic: So the loss picks from 2020 to 2023 have reflected a proper amount for the social inflation risk, and we feel comfortable with those figures.

Speaker Change: Comfortable with those figures and then going back to 2016 to 19.

Mark Kociancic: And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature. They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Mark Kociancic: And then going back to 2016 to 19, given the seasoning and the really well developed patterns, payment patterns that we've seen, the fact that there are so mature.

Speaker Change: Given the seasoning and a really well developed.

Speaker Change: Patterns payment patterns that we've seen the fact that there are so mature.

Mark Kociancic: They're approaching the 70%, 80%, 90% range depending on the year you are looking at, that's what's giving us the confidence in that segment and that's also why we're confident for the 2020 to 2023 period.

Speaker Change: Approaching the 70 80, 90% range depending on the year you are looking at that's what's giving us the confidence in that segment and that's also why we're confident for the 2020.

Speaker Change: To 2023 period.

Juan C. Andrade: Josh this is Juan, I would also add maybe just a couple of things. Gross is very similar to net, and there are no big moves under the covers per se, I think it's as Mark basically just said. The other thing thats important to note, and context always matters, When we're talking about general liability for 2016 to 2019, and the actions that we took, they're really isolated to two things. One is a program that's now been put into run off, the second one is related to a block of business that we have aggressively re-underwritten as well in the past couple of years. This is not endemic to the rest of the GL book and insurance, that also gives us confidence on the go forward numbers, and hence why you hear Mark saying that we have closed the door on the 2016 to 2019 years with this action. So look I'm just. Someone who's throws peanut shells, when the cheap seats and I apologize to understand what you're saying is that the inflationary keg was underestimated in the 16 to 19 periods, but even on those accident years. It was corrected and in the 'twenty to 'twenty three years, such that you didn't have to make. And then I would assume that if you thought that the inflation related was 5%, 6% all years needs to be adjusted up for that 6% CAGR. Is that a too simplistic way of thinking about. Yeah. But you can look at it that way for sure.

Juan: Gross is very similar to net and there are no big moves under the covers per se I think as Mark basically just said.

Juan: The other thing Thats important to note and context always matters. When we're talking about general liability for 2016 to 2019 and the actions that we took there really isolated to two things.

Juan C. Andrade: The other thing thats important to note, and context always matters, When we're talking about general liability for 2016 to 2019, and the actions that we took, they're really isolated to two things. One is a program that's now been put into run off, the second one is related to a block of business that we have aggressively re-underwritten as well in the past couple of years. This is not endemic to the rest of the GL book and insurance, that also gives us confidence on the go forward numbers, and hence why you hear Mark saying that we have closed the door on the 2016 to 2019 years with this action.

Juan C. Andrade: One is a program that's now been put into run off, the second one is related to a block of business that we have aggressively re-underwritten as well in the past couple of years. This is not endemic to the rest of the GL book and insurance, that also gives us confidence on the go forward numbers, and hence why you hear Mark saying that we have closed the door on the 2016 to 2019 years with this action.

Juan C. Andrade: One is a program that's now been put into run off, the second one is related to a block of business that we have aggressively re-underwritten as well in the past couple of years.

Juan: <unk> is a program that's now been put into run off the.

Juan: The second one is related to a block of business that we have aggressively re underwritten as well in the past couple of years. This is not endemic to the rest of the GL book and insurance.

Juan C. Andrade: This is not endemic to the rest of the GL book and insurance, that also gives us confidence on the go forward numbers, and hence why you hear Mark saying that we have closed the door on the 2016 to 2019 years with this action.

Juan: It also gives us confidence on the go forward numbers and hence why you hear remarks, saying that we have closed the door on the 2016 to 2019 years with this action.

Juan: So look I'm just.

Juan C. Andrade: So look, I'm just someone who throws peanut shells from the cheap seats and I apologize. To understand what you're saying is that the inflationary CAGR was underestimated in the 16 to 19 periods, but even on those accident years it was corrected and in the '20 to '23 years such that you didn't have to make, and I would assume that if you thought that the inflation related was 5% or 6%, all years needs to be just up for that 6% CAGR. Is that a too simplistic way of thinking about it? Yeah. But you can look at it that way for sure.

Juan C. Andrade: So look, I'm just someone who throws peanut shells from the cheap seats and I apologize.

Speaker Change: Someone who's throws peanut shells, when the cheap seats and I apologize to understand what you're saying is that the inflationary keg was underestimated in the 16 to 19 periods, but even on those accident years. It was corrected and in the 'twenty to 'twenty three years, such that you didn't have to make.

Juan C. Andrade: To understand what you're saying is that the inflationary CAGR was underestimated in the 16 to 19 periods, but even on those accident years it was corrected and in the '20 to '23 years such that you didn't have to make, and I would assume that if you thought that the inflation related was 5% or 6%, all years needs to be just up for that 6% CAGR. Is that a too simplistic way of thinking about it?

Speaker Change: And then I would assume that if you thought that the inflation related was 5%, 6% all years needs to be adjusted up for that 6% CAGR.

Juan C. Andrade: Is that a too simplistic way of thinking about it?

Speaker Change: Is that a too simplistic way of thinking about.

Mark Kociancic: No, you can look at it that way for sure.

Speaker Change: Yeah.

Speaker Change: But you can look at it that way for sure.

Josh Shanker: And then the question would be if the 2018 accident year inflationary CAGR was underestimated in '18, '19, '20, '21, 22' and '23 why don't I need to be concerned that the 2020 year was underestimated in 2021, '22 and '23?

Speaker Change: Felicia, Eric Hagen with <unk>.

Speaker Change: Estimated in 18, 19, 2021 'twenty, two and 'twenty three why don't I need to be concerned that the 2020 year was underestimated in 2021 'twenty two 'twenty three.

Unknown Executive: Well first of all I'd go back to my other remarks that I was making. So you've got payment patterns for 2016 to 2019, well developed and so we're showing ultimate loss ratios in the 16 to 19 period, which are markedly elevated from the initial loss picks. So that's one part. When we switch over to 2020, 2023 timeframe, out of an abundance of prudence, we started with elevated loss ratios to begin with, so over and above what we would've expected. Then you're getting the rate in addition to that, and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development. So it's not it's not just applying a raw number of social inflation factor, there are other things that go to mitigate the development that could happen from 2020 to 2023, and probably more importantly, how do we get comfortable with those years. So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Unknown Executive: Well first of all I'd go back to my other remarks that I was making.

Unknown Executive: So you've got payment patterns for 2016 to 2019, well developed and so we're showing ultimate loss ratios in the 16 to 19 period, which are markedly elevated from the initial loss picks. So that's one part. When we switch over to 2020, 2023 timeframe, out of an abundance of prudence, we started with elevated loss ratios to begin with, so over and above what we would've expected. Then you're getting the rate in addition to that, and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development. So it's not it's not just applying a raw number of social inflation factor, there are other things that go to mitigate the development that could happen from 2020 to 2023, and probably more importantly, how do we get comfortable with those years. So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Felicia: <unk> loss picks so.

Felicia: That's one part when we switch over to 2000 22020.

Unknown Executive: So that's one part. When we switch over to 2020, 2023 timeframe, out of an abundance of prudence, we started with elevated loss ratios to begin with, so over and above what we would've expected. Then you're getting the rate in addition to that, and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development. So it's not it's not just applying a raw number of social inflation factor, there are other things that go to mitigate the development that could happen from 2020 to 2023, and probably more importantly, how do we get comfortable with those years. So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Felicia: Three timeframe.

Felicia: Out of an abundance of Prudence, we started with elevated loss ratios to begin with so over and above.

Felicia: What we would've expected.

Unknown Executive: Then you're getting the rate in addition to that, and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development. So it's not it's not just applying a raw number of social inflation factor, there are other things that go to mitigate the development that could happen from 2020 to 2023, and probably more importantly, how do we get comfortable with those years. So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Unknown Executive: Then you're getting the rate in addition to that, and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development.

Felicia: Then youre getting the rate in addition to that and you've got the portfolio management, which is eliminating some of the root cause of the 16 to 19 development.

Unknown Executive: So it's not it's not just applying a raw number of social inflation factor, there are other things that go to mitigate the development that could happen from 2020 to 2023, and probably more importantly, how do we get comfortable with those years. So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Felicia: So it's not it's not just applying a.

Felicia: A raw number of social inflation factor there are other things that go to mitigate.

Felicia: The development that could happen from 2020 to 2023 and probably more importantly, how do we get comfortable with those years. So GL for us from 2020 to 2023.

Unknown Executive: So GL for us, from 2020 to 2023 still looks very good to us because we don't have an issue there, from 2016 to 2019 it was the lion's share of the problem that we're solving with this reserve charge today in insurance.

Felicia: Still looks very good good to US there is we don't have an issue there from 2016 to 2019. It was the lion's share of the problem that we're solving with those reserve charge today in insurance.

Unknown Executive: Yeah and again Josh this is Juan, just to add a little bit more color on that. Look the bottom line is this, the facts that you're talking about have already been addressed, and again I would reiterate some of the things that Mark said because I think it's very important. They've been address, number one by much higher loss picks that we started to put in place really at the end of 2019 or 2020, that's number one. The fact that we raised our inflation assumptions, essentially in our loss trends select, so we priced to it. Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles, all of that basically helped to give us the confidence that we're talking about today. In addition to exiting social inflation prone industry classes.

Unknown Executive: Yeah and again Josh this is Juan, just to add a little bit more color on that.

Unknown Executive: Look the bottom line is this, the facts that you're talking about have already been addressed, and again I would reiterate some of the things that Mark said because I think it's very important. They've been address, number one by much higher loss picks that we started to put in place really at the end of 2019 or 2020, that's number one. The fact that we raised our inflation assumptions, essentially in our loss trends select, so we priced to it. Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles, all of that basically helped to give us the confidence that we're talking about today. In addition to exiting social inflation prone industry classes.

Ron: The factories you were talking about have already been addressed.

Ron: And again I would reiterate some of the things that Mark <unk> I think it's very important they've been address number one by much higher loss picks that we started to put in place really at the end of 2019 for 2020, that's number one.

Unknown Executive: They've been address, number one by much higher loss picks that we started to put in place really at the end of 2019 or 2020, that's number one. The fact that we raised our inflation assumptions, essentially in our loss trends select, so we priced to it. Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles, all of that basically helped to give us the confidence that we're talking about today. In addition to exiting social inflation prone industry classes.

Unknown Executive: They've been address, number one by much higher loss picks that we started to put in place really at the end of 2019 or 2020, that's number one.

Felicia: The fact that we raised our inflation assumptions.

Unknown Executive: The fact that we raised our inflation assumptions, essentially in our loss trends select, so we priced to it. Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles, all of that basically helped to give us the confidence that we're talking about today. In addition to exiting social inflation prone industry classes.

Unknown Executive: The fact that we raised our inflation assumptions, essentially in our loss trends select, so we priced to it.

Felicia: Essentially in our loss trends select so we price to win number three.

Felicia: Fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side. The fact that we did a lot of different things for example, increasing our loss sensitive mix lowering limits racing deductibles all of that basically helped to give us the confidence that we're talking about today in.

Unknown Executive: Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles, all of that basically helped to give us the confidence that we're talking about today. In addition to exiting social inflation prone industry classes.

Unknown Executive: Number three, the fact that additional pricing in excess of trend was coming in through that period of time and on the underwriting side, the fact that we did a lot of different things, for example, increasing our loss sensitive mix, lowering limits, racing deductibles. All of that basically helped to give us the confidence that we're talking about today, in addition to exiting social inflation prone industry classes.

Felicia: Two exiting social inflation prone industry classes.

Unknown Executive: In addition to exiting social inflation prone industry classes.

Josh Shanker: Okay. Thank you for the answers, I know it's a complicated issue. I'll take anything else have offline, I appreciate it, thank you thanks, Josh.

Josh Shanker: Okay. Thank you for the answers, I know it's a complicated issue. I'll take anything else have offline, I appreciate it, thank you

Speaker Change: Complicated issue.

Speaker Change: I'll take anything else have offline I appreciate it. Thank you thanks, Josh.

Unknown Executive: Thanks, Josh.

Operator: Thank you, and our next question today comes from Elyse Greenspan at Wells Fargo. Please go ahead.

Elyse Greenspan: Alright, thanks, following up on the reserves as well. I was hoping, can you give us a sense on where you're working your reserves on overall and in each of the segments insurance and reinsurance relative to the actuarial midpoint? And where was it before?

Elyse Greenspan: Following up on the reserves as well I was hoping can you give us a sense on where youre working your reserves.

Elyse Greenspan: Overall and in each of the segments insurance and reinsurance relative to the actuarial midpoint and where was it before.

Elyse Greenspan: And where was it before?

Elyse Greenspan: <unk>.

Unknown Executive: So we're clearly looking to best estimate plus a margin overall, so we do feel confident with that, I can tell you two pieces to the margin point. So one is, what's embedded in the balance sheets, and I think we've still got a good chunk of seasoned or embedded margin in the reserves. And then we have the more green years, particularly in longer tail casualty, which we feel strong about as well, but that's going to take some time to play out. So I would say there is a embedded margin in diversified in the current set of reserves. The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. So to get back to your point, best estimate plus the margin feeling good about our positioningm and the flow of margin in the future. This is one and just to add to what Mark is saying to think about what we have been saying and said in this call today about the quality of the underwriting really over the last four years the pricing environment that we've been in ahead of loss trend the portfolio management actions that we have done and how we've crafted both books to be higher. Quality, what that basically means is that there is more in the tank and theres lots of good news in the future that we just haven't touched for the reasons that Mark just articulated they're just not well season yet.

Mark Kociancic: So we're clearly looking to best estimate plus a margin overall, so we do feel confident with that, I can tell you two pieces to the margin point. So one is, what's embedded in the balance sheets, and I think we've still got a good chunk of seasoned or embedded margin in the reserves. And then we have the more green years, particularly in longer tail casualty, which we feel strong about as well, but that's going to take some time to play out. So I would say there is a embedded margin in diversified in the current set of reserves. The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: So we're clearly looking to best estimate plus a margin overall, so we do feel confident with that, I can tell you two pieces to the margin point.

Speaker Change: I can tell you two pieces to the margin point. So one is whats embedded in the balance sheets and I think we've still got.

Mark Kociancic: So one is, what's embedded in the balance sheets, and I think we've still got a good chunk of seasoned or embedded margin in the reserves. And then we have the more green years, particularly in longer tail casualty, which we feel strong about as well, but that's going to take some time to play out. So I would say there is a embedded margin in diversified in the current set of reserves. The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: So one is, what's embedded in the balance sheets, and I think we've still got a good chunk of seasoned or embedded margin in the reserves.

Speaker Change: A good chunk of seasoned or embedded margin in the reserves.

Mark Kociancic: And then we have the more green years, particularly in longer tail casualty, which we feel strong about as well, but that's going to take some time to play out. So I would say there is a embedded margin in diversified in the current set of reserves. The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: And then we have the more green years, particularly in longer tail casualty, which we feel strong about as well, but that's going to take some time to play out.

Speaker Change: Then we have the more green years, particularly in longer tail casualty, which we feel.

Speaker Change: Strong about as well, but thats going to take some time to play out so I would say there is a.

Mark Kociancic: So I would say there is a embedded margin in diversified in the current set of reserves. The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: So I would say there is a embedded margin in diversified in the current set of reserves.

Speaker Change: Embedded margin in diversified in the current set of reserves. The second part is really the flow or the engine that's producing it and this is what we're trying to emphasize with a lot of the.

Mark Kociancic: The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives. The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: The second part is really the flow, or the engine that's producing it, and this is what we're trying to emphasize with a lot of the remarks we made in the model lives.

Speaker Change: Our remarks, we made in the model wise the steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now so when you think about the reserves that we released for example, youre seeing mortgage for.

Mark Kociancic: The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now. So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: The steps that we've taken to ensure that we are producing margin accretive business and we're just taking our time to let it season, we're not touching it right now.

Mark Kociancic: So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019. So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: So when you think about the reserves that we released, for example, you're seeing mortgage for example, there was, most of that release was from 2013 to 2019.

Speaker Change: For example, there was most of that release was from 2013 to 2019, so well season very prudently reserved we're letting that out similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases again short tail well seasoned well.

Mark Kociancic: So well seasoned, very prudently reserved, we're letting that out, similarly on the property side, you've got a 2020 to 2022 is the lion's share of those releases, again short tail, well seasoned, well defined, we're letting that out. And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner. And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Mark Kociancic: And so we have this engine that is producing and embedding margins, and for longer tail lines it takes more time to let it season, for shorter tail it can become available sooner.

Speaker Change: Defined.

Speaker Change: We're letting that out and so we have this engine.

Speaker Change: That is producing and embedding margins and for longer tail lines. It takes more time to let it season for shorter tail.

Mark Kociancic: And so to get back to your point, best estimate plus the margin feeling good about our positioning and the flow of margin in the future.

Speaker Change: It can become available sooner.

Speaker Change: So to get back to your point best estimate plus a margin feeling good about our positioning and the flow of margin in the future.

Unknown Executive: Elyse this is Juan, just to add to what Mark is saying. To think about what we have been saying, and said in this call today about the quality of the underwriting really over the last four years, the pricing environment that we've been in ahead of loss trend, the portfolio management actions that we have done and how we've crafted both books to be higher quality. What that basically means is that there is more in the tank and that there's lots of good news in the future that we just haven't touched for the reasons that Mark just articulatedm they're just not well season yet.

Unknown Executive: Elyse this is Juan, just to add to what Mark is saying.

Unknown Executive: To think about what we have been saying, and said in this call today about the quality of the underwriting really over the last four years, the pricing environment that we've been in ahead of loss trend, the portfolio management actions that we have done and how we've crafted both books to be higher quality. What that basically means is that there is more in the tank and that there's lots of good news in the future that we just haven't touched for the reasons that Mark just articulatedm they're just not well season yet.

Speaker Change: This is one and just to add to what Mark is saying to think about what we have been saying and said in this call today about the quality of the underwriting really over the last four years the pricing environment that we've been in ahead of loss trend the portfolio management actions that we have done and how we've crafted both books to be higher.

Unknown Executive: What that basically means is that there is more in the tank and that there's lots of good news in the future that we just haven't touched for the reasons that Mark just articulatedm they're just not well season yet.

Speaker Change: Quality, what that basically means is that there is more in the tank and theres lots of good news in the future that we just haven't touched for the reasons that Mark just articulated they're just not well season yet.

Elyse Greenspan: Okay, and then my follow up question. You guys said that you made an adjustment in reinsurance, but I think Mark you said that it was marginal for some of those years, 2016 to 2019. Can you give us a sense of what the reinsurance charge was for those years? And I guess why you didn't think you had to embed some extra conservatism and move that a little bit further?

Elyse Greenspan: Okay, and then my follow up question.

Elyse Greenspan: You guys said that you made an adjustment in reinsurance, but I think Mark you said that it was marginal for some of those years, 2016 to 2019. Can you give us a sense of what the reinsurance charge was for those years? And I guess why you didn't think you had to embed some extra conservatism and move that a little bit further?

Elyse Greenspan: You guys said that you made an adjustment in reinsurance, but I think Mark you said that it was marginal for some of those years, 2016 to 2019.

Speaker Change: You guys said that you made an adjustment in reinsurance, but I think Mark you said that it was a marginal.

Speaker Change: For some of those years 2016 to 2019 can you give us a sense of what.

Elyse Greenspan: Can you give us a sense of what the reinsurance charge was for those years? And I guess why you didn't think you had to embed some extra conservatism and move that a little bit further?

Speaker Change: The reinsurance charge.

Speaker Change: For those years.

Speaker Change: I guess why you didn't think you had to embed some extra conservatism and move that a little bit further.

Unknown Executive: It was marginal you're looking at a very small percentage of the total reserves low single digit for those exposed years. I think there's a couple of things that you can look at, and I would start with the reserve charge we took in 2020, that was fairly meaningful at $400 million dollars and most of that was going into the casualty years from 2016 to 19, so I think we took a good chunk of that Apple. Over the last few years, both sides insurance, and reinsurance there has been some minor adjustments for those years throughout the time. So we have been nibbling away at the data that we've been seeing. 2023 I think was more pronounced in terms of industry loss data for those years, but we were just in a much stronger position from a reinsurance point of view on those years. I don't see any problem going forward on either side for 2016 to 19 in either segment. When you say low single digits, you mean, low single digit millions or low single digits as a percent of <unk>. <unk> percentage.

Mark Kociancic: It was marginal you're looking at a very small percentage of the total reserves low single digit for those exposed years. I think there's a couple of things that you can look at, and I would start with the reserve charge we took in 2020, that was fairly meaningful at $400 million dollars and most of that was going into the casualty years from 2016 to 19, so I think we took a good chunk of that Apple. Over the last few years, both sides insurance, and reinsurance there has been some minor adjustments for those years throughout the time. So we have been nibbling away at the data that we've been seeing. 2023 I think was more pronounced in terms of industry loss data for those years, but we were just in a much stronger position from a reinsurance point of view on those years. I don't see any problem going forward on either side for 2016 to 19 in either segment.

Mark Kociancic: It was marginal you're looking at a very small percentage of the total reserves low single digit for those exposed years.

Speaker Change: Marginal youre looking at a very small percentage of the total reserves low single digit.

Speaker Change: For those exposed years, I think I think there's a couple of things.

Mark Kociancic: I think there's a couple of things that you can look at, and I would start with the reserve charge we took in 2020, that was fairly meaningful at $400 million dollars and most of that was going into the casualty years from 2016 to 19, so I think we took a good chunk of that Apple. Over the last few years, both sides insurance, and reinsurance there has been some minor adjustments for those years throughout the time. So we have been nibbling away at the data that we've been seeing. 2023 I think was more pronounced in terms of industry loss data for those years, but we were just in a much stronger position from a reinsurance point of view on those years. I don't see any problem going forward on either side for 2016 to 19 in either segment.

Speaker Change: You can look at and I would start with.

Speaker Change: Reserve charge, we took in 2020 that was fairly meaningful at $400 million and most of that was going into the.

Speaker Change: The casualty years from 2016 to 19, so I think we took a good chunk of that Apple.

Speaker Change: Over the last few years, both sides insurance and reinsurance there has been some minor adjustments.

Mark Kociancic: Over the last few years, both sides insurance, and reinsurance there has been some minor adjustments for those years throughout the time. So we have been nibbling away at the data that we've been seeing. 2023 I think was more pronounced in terms of industry loss data for those years, but we were just in a much stronger position from a reinsurance point of view on those years. I don't see any problem going forward on either side for 2016 to 19 in either segment.

Mark Kociancic: Over the last few years, both sides insurance, and reinsurance there has been some minor adjustments for those years throughout the time.

Speaker Change: For those years throughout the time, so we have been nibbling away at.

Mark Kociancic: So we have been nibbling away at the data that we've been seeing. 2023 I think was more pronounced in terms of industry loss data for those years, but we were just in a much stronger position from a reinsurance point of view on those years. I don't see any problem going forward on either side for 2016 to 19 in either segment.

Speaker Change: The data that we've been seeing 2023, I think was more pronounced in terms of industry loss data for those years.

Speaker Change: But we were and we were just in a much stronger position from a reinsurance point of view.

Speaker Change: On those on those years.

Speaker Change: I don't see any problem going forward on either side for 2016 to 19 in either segment.

Unknown Executive: When you say low single digits, you mean, low single digit millions or low single digits as a percent of [Inaudible]. percentage.

Elyse Greenspan: When you say low single digits, you mean, low single digit millions or low single digits as a percent of [Inaudible].

Speaker Change: When you say low single digits, you mean, low single digit millions or low single digits as a percent of <unk>.

Speaker Change: <unk> percentage.

Mark Kociancic: Percentage.

Elyse Greenspan: Thank you.

Operator: Thank you and our next question today comes from David Motemaden with Evercore ISI. Please go ahead.

David: With Evercore ISI. Please go ahead.

David Motemaden: Hi, Thanks, Good morning, just following up on on the reserves. So mark and Juan, you guys spoke about specific programs that are driving the insurance charge up, mainly on GL, but I guess I would've thought that the the trends impacting those lines are the same trends that are impacting the rest of your book. So I'm just wondering as you guys take a look at it, how do you make the conclusion that is isolated to these books in these accident years? And not other programs across GL, but other lines in general?

David Motemaden: Hi, Thanks, Good morning, just following up on on the reserves.

David: Just following up on on the reserves.

David Motemaden: So mark and Juan, you guys spoke about specific programs that are driving the insurance charge up, mainly on GL, but I guess I would've thought that the the trends impacting those lines are the same trends that are impacting the rest of your book. So I'm just wondering as you guys take a look at it, how do you make the conclusion that is isolated to these books in these accident years? And not other programs across GL, but other lines in general?

David: So mark in one you guys spoke about specific programs that are driving the insurance charge mainly on GL.

David: But I guess I would've thought that the the trends impacting those lines are the same trends that are impacting the rest of your book. So I'm just wondering as you guys take a look at it how do you make the conclusion that it's isolated to these.

David Motemaden: So I'm just wondering as you guys take a look at it, how do you make the conclusion that is isolated to these books in these accident years? And not other programs across GL, but other lines in general?

David: These books in these accident years and not other programs across GL, but but other lines in general.

Mark Kociancic: David It's mark. I think that data for us is quite definitive when you look at it, so in particular one program in one block of business is dry driving a very strong majority of the development that we're seeing in GL. It doesn't mean it's 100%, but it's clearly a strong majority. And just in terms of other lines, I want to make clear, umbrella for example on our side was performed well during that 2016 to 2019 period, professional liability very minimal impact for us. So this is really general liability, and there were two main components for us, which we identified some years ago and began to act upon, but the 2016 to 2019 aspects of those two are what we're dealing with today. Yes, David and what I would add is those two items that both mark and I have mentioned dose our niche type businesses. That sort of standard type of GL. And essentially we have closed that book. For all intents and purposes.

Mark: David It's mark.

Mark: I think that data for us is quite definitive when you look at it. So in particular one program in one block of business is dry driving.

David: A very strong majority of the development that we're seeing in GL. It doesn't mean, it's 100%, but it's clearly a strong majority.

David: And just in terms of other lines I want to make clear.

Mark Kociancic: And just in terms of other lines, I want to make clear, umbrella for example on our side was performed well during that 2016 to 2019 period, professional liability very minimal impact for us. So this is really general liability, and there were two main components for us, which we identified some years ago and began to act upon, but the 2016 to 2019 aspects of those two are what we're dealing with today.

David: <unk> for example on our side was perf.

Mark: Performed well during that 20 to 16.

Mark: So 2019 period professional liability very minimal impact for us. So this is really general liability.

Mark Kociancic: So this is really general liability, and there were two main components for us, which we identified some years ago and began to act upon, but the 2016 to 2019 aspects of those two are what we're dealing with today.

Mark: And there were two main components for us, which we identified some years ago and began to act decline, but the 2016 to 2019 aspects of those two are what we're dealing with.

Juan C. Andrade: Yes, David and what I would add is, those two items that both Mark and I have mentioned, those are niche type businesses, not sort of standard type of GL. And essentially we have closed that book for all intents and purposes.

Mark: Today.

Speaker Change: Yes, David and what I would add is those two items that both mark and I have mentioned dose our niche type businesses.

David: That sort of standard type of GL.

David: And essentially we have closed that book.

David: For all intents and purposes.

David Motemaden: Got it thanks, and then just on that point, just closing the book. I guess I'm sort of just wondering any other color you can give us that would help us feel comfortable that this is behind us? I kind of look at the charge that you guys took in 2020 and then after that there have been more additions, it sounds like you guys did a little bit here in 2023. So what what makes you think we don't sort of see that same trend happen on the insurance side as well?

David Motemaden: Got it thanks, and then just on that point, just closing the book.

David: And then.

David: Yeah, just just on that point just closing the book.

David Motemaden: I guess I'm sort of just wondering any other color you can give us that would help us feel comfortable that this is behind us? I kind of look at the charge that you guys took in 2020 and then after that there have been more additions, it sounds like you guys did a little bit here in 2023. So what what makes you think we don't sort of see that same trend happen on the insurance side as well?

David:

Mark: I guess I'm sort of just wondering any.

Mark: Any other color you can give us that would help.

Mark: Help us feel comfortable that this is behind us.

Mark: I kind of look at the charge that you guys took in 2020.

Mark: And then after that there have been more additions it sounds like you guys did a little bit here in 2023.

David Motemaden: So what what makes you think we don't sort of see that same trend happen on the insurance side as well?

Mark: So what what makes you think we don't sort of see that same.

Mark: Same trend happened on the insurance side as well.

Mark Kociancic: Well I think there's several points. First of all you've got very well developed reporting patterns for the 16 to 19 years, so again anywhere from 70% to 90% development completion of development for 2016 to 19, so that gives us a lot of confidence that we're dealing with with actual data. We also have assumptions that I think are very prudent in terms of the social inflation impact, and so when you combine that all together, we're able to capture with a high level of confidence what we think the ultimate loss ratios are going to be for really '17, '18, and '19, 16 is pretty much, I think done and really didn't move that much for us. The larger point is 2020 onwards, and I think this is what we've been trying to emphasize, is we're benefiting from several factors, you can start with the process that we've embedded, not only on the reserving side, but how we act upon information inside the company. And so you're seeing at the client's data, what we're getting on the reserving side and embedding it within management pricing and underwriting, so which classes of business' which programs are causing issues? Or at risk? are we getting adequate pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that. Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark Kociancic: Well I think there's several points.

Mark Kociancic: First of all you've got very well developed reporting patterns for the 16 to 19 years, so again anywhere from 70% to 90% development completion of development for 2016 to 19, so that gives us a lot of confidence that we're dealing with with actual data. We also have assumptions that I think are very prudent in terms of the social inflation impact, and so when you combine that all together, we're able to capture with a high level of confidence what we think the ultimate loss ratios are going to be for really '17, '18, and '19, 16 is pretty much, I think done and really didn't move that much for us. The larger point is 2020 onwards, and I think this is what we've been trying to emphasize, is we're benefiting from several factors, you can start with the process that we've embedded, not only on the reserving side, but how we act upon information inside the company. And so you're seeing at the client's data, what we're getting on the reserving side and embedding it within management pricing and underwriting, so which classes of business' which programs are causing issues? Or at risk? are we getting adequate pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that. Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Speaker Change: For 2016 to 19, so that gives us a lot of confidence that we're dealing with with actual data. We also have assumptions that I think are very prudent in terms of the social inflation impact and so when you combine that all together, we're able to capture with a high level of confidence what we think.

Mark Kociancic: We also have assumptions that I think are very prudent in terms of the social inflation impact, and so when you combine that all together, we're able to capture with a high level of confidence what we think the ultimate loss ratios are going to be for really '17, '18, and '19, 16 is pretty much, I think done and really didn't move that much for us. The larger point is 2020 onwards, and I think this is what we've been trying to emphasize, is we're benefiting from several factors, you can start with the process that we've embedded, not only on the reserving side, but how we act upon information inside the company. And so you're seeing at the client's data, what we're getting on the reserving side and embedding it within management pricing and underwriting, so which classes of business' which programs are causing issues? Or at risk? are we getting adequate pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that. Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: The ultimate loss ratios are going to be for.

Mark: Really 17, 18, and $19 16 is pretty much.

Mark: I think done and really didn't move that much for us. The larger point is 2020 onwards, and I think this is what we've been trying to emphasize is we're benefiting from several factors you can start with the process that we've embedded.

Mark Kociancic: The larger point is 2020 onwards, and I think this is what we've been trying to emphasize, is we're benefiting from several factors, you can start with the process that we've embedded, not only on the reserving side, but how we act upon information inside the company. And so you're seeing at the client's data, what we're getting on the reserving side and embedding it within management pricing and underwriting, so which classes of business' which programs are causing issues? Or at risk? are we getting adequate pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that. Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: Not only on the reserving side, but how we act upon information inside the company and so youre seeing.

Mark: The claims data, what we're getting on the reserving side and embedding it within management pricing.

Mark Kociancic: And so you're seeing at the client's data, what we're getting on the reserving side and embedding it within management pricing and underwriting, so which classes of business' which programs are causing issues? Or at risk? are we getting adequate pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that. Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: And underwriting, so which classes of business, which programs are.

Mark: Causing issues or at risk are we getting adequate.

Mark: Pricing for it and so we're far more disciplined I would say 2020 onwards with respect to that.

Mark: In part there has been a significant amount of rate that's accumulated on a quarterly basis, beginning in Q4 of 2019 and Thats clearly.

Mark Kociancic: Second part, there's been a significant amount of rate that has accumulated on a quarterly basis, beginning in Q4 of 2019, and that's clearly helping, and it's supported by the industry loss data thats been developing since that point in time. And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: Helping and it's supported by the industry loss data thats been developing since that point.

Mark: Point in time, and then you've got the the prudent loss picks clearly we've elevated our loss picks selection taking into account.

Mark Kociancic: And then you've got the prudent loss picks, clearly we've elevated our loss picks selection, taking into account social inflation factors, other risk factors, just trying to be more prudent as a management team. Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: <unk> inflation factors other risk factors, just trying to be more prudent as a management team.

Mark: Nobody wants to go through this exercise and so we recognize that when we started and hence the.

Mark Kociancic: Nobody wants to go through this exercise, and so we recognize that when we started and hence the constant effort on portfolio management, I mean that is ultimately the key, understanding at a granular basis your portfolio by line, by client, by policy. What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: Constant effort on portfolio management that is ultimately the key understanding at a granular basis your portfolio by line by client by policy what is driving your profitability what is driving.

Mark Kociancic: What is driving your profitability? What is driving underwhelming results? What is driving good results? The risk selection aspect, and that's something that I think we've been able to do a pretty good job of since 2020.

Mark: Underwhelming results what is driving good results the risk selection aspect and that's something that I think we've been able to do.

Mark: Pretty good job of since 2020.

Mike Karmilowicz: This is Mike Karmilowicz, the other piece I'd add to all of this is, as you think about us calling into the hard market years, these portfolio compositions are dramatically different. To the point to risk selection, we've massively cut down rates over 40% on average, our rates overall limits are down in excess, or we've actually continued to drive and thinking just on GL, our policy count is down over 23% in the last two years, as we drive heavy risk selection, driving rate embedded to exceed margin. So we were making all the right steps to continue to be proactive in our portfolio management.

Mike Karmilowicz: To the point to risk selection, we've massively cut down rates over 40% on average, our rates overall limits are down in excess, or we've actually continued to drive and thinking just on GL, our policy count is down over 23% in the last two years, as we drive heavy risk selection, driving rate embedded to exceed margin. So we were making all the right steps to continue to be proactive in our portfolio management.

Mark: Just on GL, our policy count is down over 23% in the last two years as we drive heavy risk selection driving rate embedded to exceed margin. So we were making all the right steps to continue to be proactive in our portfolio management.

Mike Karmilowicz: So we were making all the right steps to continue to be proactive in our portfolio management.

David Motemaden: Understood I appreciate that thanks.

Gregory Theatres: And our next question today comes from Gregory theatres with Raymond James. Please go ahead. Good morning, everyone I'd like to pivot to the reinsurance business and. You know a lot of market commentary and your commentary around the one one renewals certainly seem more orderly on. From a supply demand perspective. I guess, where I'm going with this is just the sustainability of price and terms and conditions that have been achieved over the last year as we look to six one. And future renewal periods. So any any perspective on that like for example, we were hearing of more interest in the risk remote layers by the marketplace et cetera. So just your perspective on how the market's changing inside reinsurance would be helpful.

Operator: And our next question today comes from Gregory Peters with Raymond James. Please go ahead.

Gregory Theatres: Good morning, everyone I'd like to pivot to the reinsurance business and.

Gregory Peters: Good morning, everyone I'd like to pivot to the reinsurance business, and a lot of market commentary and your commentary around the 1/1 renewals certainly seem more orderly on from a supply demand perspective. I guess, where I'm going with this is just the sustainability of price and terms and conditions that have been achieved over the last year, as we look to six one and future renewal periods. So any perspective on that? Can you, like for example, we were hearing of more interest in the risk remote layers by the marketplace etcetera. So just your perspective on how the market's changing inside reinsurance would be helpful.

Gregory Theatres: You know a lot of market commentary and your commentary around the one one renewals certainly seem more orderly on.

Gregory Theatres: From a supply demand perspective.

Gregory Peters: I guess, where I'm going with this is just the sustainability of price and terms and conditions that have been achieved over the last year, as we look to six one and future renewal periods. So any perspective on that? Can you, like for example, we were hearing of more interest in the risk remote layers by the marketplace etcetera. So just your perspective on how the market's changing inside reinsurance would be helpful.

Gregory Theatres: I guess, where I'm going with this is just the sustainability of price and terms and conditions that have been achieved over the last year as we look to six one.

Gregory Theatres: And future renewal periods.

Gregory Peters: So any perspective on that? Can you, like for example, we were hearing of more interest in the risk remote layers by the marketplace etcetera. So just your perspective on how the market's changing inside reinsurance would be helpful.

Gregory Theatres: So any any perspective on that like for example, we were hearing of more interest in the risk remote layers by the marketplace et cetera. So just your perspective on how the market's changing inside reinsurance would be helpful.

Jim Williams: Sure Greg This is Jim Williams and thanks for the question Everest did have another excellent. Jan one renewals you've heard one say, we were able to deploy our incremental capital at really exceptional economics, we did grow the cat book, including leading or participating in many of the. The new top off programs that you would've heard about as. As well as executing on a number of non cat opportunities in engineering and cyber aviation and Marine So is really excellent all around. In terms of the dynamics of the sustainability of the market. On the property Cat side, which is I think where the core of the question is I would really point to three critical factors in terms of what is driving or what drove that market correction. Started in the back half of 2022, and then obviously reached a peak and sustained itself through 2023. The first is there's been this persistent gap between supply and demand in terms of available capital and clearly some of that ameliorates as the industry earns good returns. In 2023. But theres really fundamentally been no formation of new capital in the industry other than our equity raise and so I think there is still that element. There is also rising demand from our seasons to buy more. Limit, which we saw again in some of those new deals that came out the second key factors, which I think is critical as underwriting psychology. The fact is the industry as it has been affected by multiple years of elevated loss activity, that's hurt underwriters across across the business and they understand I think very firmly we need a sustained rate. Mentum to earn good returns and then the last thing is if you look at the underlying loss trends climate change impacts of development patterns. We're in a elevated cat world is the new normal and we saw it again this year, we had an elevated 2023 cat year. So our view is that puts legs on this market and our expectation remains that these terrific conditions will persist past the January 125 renewal. In terms of risk remote layers, yes, I mean look there's there's interest there because I think people are trying to get away from all of the factors that I. Just described we did see some cat bond formation. Up in the towers. That caps price increases, but as you saw in our portfolio there is plenty of areas. Of these programs, where we can continue to do exceptionally well and so we see just tons of opportunity for us as we go forward. And just building on that answer I was looking at slide 16 of your Investor deck, where you talk about the risk profile.

jim Williamson: Sure Greg, this is Jim Williamson, thanks for the question. Everest did have another excellent Jan 1 renewals, you've heard Juan say we were able to deploy our incremental capital at really exceptional economics. We did grow the Cat book, including leading or participating in many of the new top off programs that you would've heard about, as well as executing on a number of non Cat opportunities in engineering and cyber aviation and Marine, So is really excellent all around. In terms of the dynamics of the sustainability of the market on the property Cat side, which is I think where the core of the question was, I would really point to three critical factors in terms of what is driving or what drove that market correction that started in the back half of 2022, and then obviously reached a peak and sustained itself through 2023? The first is, there's been this persistent gap between supply and demand in terms of available capital, and clearly some of that ameliorates as the industry earns good returns in 2023. But there's really fundamentally been no formation of new capital in the industry other than our equity raise, and so I think there's still that element, there is also rising demand from our cedents to buy more limit, which we saw again in some of those new deals that came out. The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Jim Williams: Jan one renewals you've heard one say, we were able to deploy our incremental capital at really exceptional economics, we did grow the cat book, including leading or participating in many of the.

jim Williamson: We did grow the Cat book, including leading or participating in many of the new top off programs that you would've heard about, as well as executing on a number of non Cat opportunities in engineering and cyber aviation and Marine, so is really excellent all around. In terms of the dynamics of the sustainability of the market on the property Cat side, which is I think where the core of the question was, I would really point to three critical factors in terms of what is driving or what drove that market correction that started in the back half of 2022, and then obviously reached a peak and sustained itself through 2023? The first is, there's been this persistent gap between supply and demand in terms of available capital, and clearly some of that ameliorates as the industry earns good returns in 2023. But there's really fundamentally been no formation of new capital in the industry other than our equity raise, and so I think there's still that element, there is also rising demand from our cedents to buy more limit, which we saw again in some of those new deals that came out. The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Jim Williams: The new top off programs that you would've heard about as.

Jim Williams: As well as executing on a number of non cat opportunities in engineering and cyber aviation and Marine So is really excellent all around.

jim Williamson: In terms of the dynamics of the sustainability of the market on the property Cat side, which is I think where the core of the question was, I would really point to three critical factors in terms of what is driving or what drove that market correction that started in the back half of 2022, and then obviously reached a peak and sustained itself through 2023? The first is, there's been this persistent gap between supply and demand in terms of available capital, and clearly some of that ameliorates as the industry earns good returns in 2023. But there's really fundamentally been no formation of new capital in the industry other than our equity raise, and so I think there's still that element, there is also rising demand from our cedents to buy more limit, which we saw again in some of those new deals that came out. The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Speaker Change: In terms of the dynamics of the sustainability of the market.

Speaker Change: On the property Cat side, which is I think where the core of the question is I would really point to three critical factors in terms of what is driving or what drove that market correction.

Speaker Change: Started in the back half of 2022, and then obviously reached a peak and sustained itself through 2023. The first is there's been this persistent gap between supply and demand in terms of available capital and clearly some of that ameliorates as the industry earns good returns.

jim Williamson: The first is, there's been this persistent gap between supply and demand in terms of available capital, and clearly some of that ameliorates as the industry earns good returns in 2023. But there's really fundamentally been no formation of new capital in the industry other than our equity raise, and so I think there's still that element, there is also rising demand from our cedents to buy more limit, which we saw again in some of those new deals that came out. The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

jim Williamson: But there's really fundamentally been no formation of new capital in the industry other than our equity raise, and so I think there's still that element, there is also rising demand from our cedents to buy more limit, which we saw again in some of those new deals that came out. The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Speaker Change: In 2023.

Speaker Change: But theres really fundamentally been no formation of new capital in the industry other than our equity raise and so I think there is still that element. There is also rising demand from our seasons to buy more.

Speaker Change: Limit, which we saw again in some of those new deals that came out the second key factors, which I think is critical as underwriting psychology. The fact is the industry as it has been affected by multiple years of elevated loss activity, that's hurt underwriters across across the business and they understand I think very firmly we need a sustained rate.

jim Williamson: The second key factors, which I think is critical is underwriting psychology the fact that the industry it has been affected by multiple years of elevated loss activity, that's hurt underwriters across the business, and they understand I think very firmly we need to sustain rate momentum to earn good returns. And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

jim Williamson: And then the last thing is, if you look at the underlying loss trends, climate change, impacts of development patterns, we're in a elevated Cat world, is the new normal and we saw it again this year, we had an elevated 2023 Cat year. So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Speaker Change: Mentum to earn good returns and then the last thing is if you look at the underlying loss trends climate change impacts of development patterns.

Speaker Change: We're in a elevated cat world is the new normal and we saw it again this year, we had an elevated 2023 cat year. So our view is that puts legs on this market and our expectation remains that these terrific conditions will persist past the January 125 renewal.

jim Williamson: So our view is, that puts legs on this market, and our expectation remains that these terrific conditions will persist past the January 125 renewal.

Jim Williams: In terms of risk remote layers, yes, I mean look there's there's interest there because I think people are trying to get away from all of the factors that I. Just described we did see some cat bond formation. Up in the towers. That caps price increases, but as you saw in our portfolio there is plenty of areas. Of these programs, where we can continue to do exceptionally well and so we see just tons of opportunity for us as we go forward. And just building on that answer I was looking at slide 16 of your Investor deck, where you talk about the risk profile. And after tax net one in 100 year P. M L. Given some of the growth statistics, you've thrown out in the property cat I guess I'm surprised that we haven't seen a bigger increase in your one in 100 year sort of P. M L. <unk>. Give us a sense of what's going on there that's keeping a muted.

Jim Williams: In terms of risk remote layers, yes, I mean look there's interest there because I think people are trying to get away from all of the factors that I just described. We did see some Cat bond formation up in the towers that Cat's price increases, but as you saw in our portfolio there is plenty of areas of these programs where we can continue to do exceptionally well, and so we see just tons of opportunity for us as we go forward.

Jim Williams: In terms of risk remote layers, yes, I mean look there's interest there because I think people are trying to get away from all of the factors that I just described.

Speaker Change: In terms of risk remote layers, yes, I mean look there's there's interest there because I think people are trying to get away from all of the factors that I. Just described we did see some cat bond formation.

Jim Williams: We did see some Cat bond formation up in the towers that Cat's price increases, but as you saw in our portfolio there is plenty of areas of these programs where we can continue to do exceptionally well, and so we see just tons of opportunity for us as we go forward.

Speaker Change: Up in the towers.

Speaker Change: That caps price increases, but as you saw in our portfolio there is plenty of areas.

Speaker Change: Of these programs, where we can continue to do exceptionally well and so we see just tons of opportunity for us as we go forward.

Gregory Peters: And just building on that answer, I was looking at slide 16 of your Investor deck where you talk about the risk profile and after tax net 1 in 100 year PML. Given some of the growth statistics you've thrown out in the property Cat, I guess I'm surprised that we haven't seen a bigger increase in your 1 in 100 year sort of PML population. Can you Give us a sense of what's going on there that's keeping it muted?

Gregory Peters: And just building on that answer, I was looking at slide 16 of your Investor deck where you talk about the risk profile and after tax net 1 in 100 year PML.

Speaker Change: And just building on that answer I was looking at slide 16 of your Investor deck, where you talk about the risk profile.

Speaker Change: And after tax net one in 100 year P. M L.

Gregory Peters: Given some of the growth statistics you've thrown out in the property Cat, I guess I'm surprised that we haven't seen a bigger increase in your 1 in 100 year sort of PML population. Can you Give us a sense of what's going on there that's keeping it muted?

Speaker Change: Given some of the growth statistics, you've thrown out in the property cat I guess I'm surprised that we haven't seen a bigger increase in your one in 100 year sort of P. M L.

Gregory Peters: Can you Give us a sense of what's going on there that's keeping it muted?

Speaker Change: <unk>.

Speaker Change: Give us a sense of what's going on there that's keeping a muted.

jim Williamson: Sure Greg, Jim again. So a couple of things, and you would have heard us opined on this in prior calls, a couple of things moving there, first of all, the way we shaped our portfolio definitely has an impact on the shape of the curve and the shape of the P&L. And so, one of the things that we did for example throughout 2023 was move up in programs, and really get more remote in terms of our average attachment level, and I have talked about an average attachment that might've been the one in four, or one in five year range, is now more like a 1 in 7, and that's very meaningful in terms of managing total risk profile. So that's been very important, the other thing I would indicate obviously is we are growing our portfolio across the world, we see really terrific opportunities in markets in Europe, in Asia, in Latin America. So we don't have to over lever ourselves to our existing peak zones, we can be diversified and get exceptional returns, and then the last thing I would note, obviously is the company is growing, and so the capital base that denominator of those 1 in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

Jim: So a couple of things and you would have heard US opined on this in prior calls a couple a couple of things moving there first of all the way we shaped our portfolio.

Jim: <unk> has an impact on the shape of the curve and the shape of the P&L and so one of the things that we did for example throughout 2023 was move up in programs and really.

jim Williamson: And so, one of the things that we did for example throughout 2023 was move up in programs, and really get more remote in terms of our average attachment level, and I have talked about an average attachment that might've been the one in four, or one in five year range, is now more like a 1 in 7, and that's very meaningful in terms of managing total risk profile. So that's been very important, the other thing I would indicate obviously is we are growing our portfolio across the world, we see really terrific opportunities in markets in Europe, in Asia, in Latin America. So we don't have to over lever ourselves to our existing peak zones, we can be diversified and get exceptional returns, and then the last thing I would note, obviously is the company is growing, and so the capital base that denominator of those 1 in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

Speaker Change: Get more remote in terms of our average attachment level and I have talked about an average attachment that might've been in the one four or one in five year range is now more like a 107 and that's very meaningful in terms of managing total risk profile.

Speaker Change: So that's been very important the other thing I would indicate obviously is we are growing our portfolio across the world, we see really terrific opportunities in markets in Europe, and Asia, and Latin America. So we don't have to over our levered over lever ourselves to our existing peak zones, we can be diversified and get exceptional returns and then the <unk>.

jim Williamson: So that's been very important, the other thing I would indicate obviously is we are growing our portfolio across the world, we see really terrific opportunities in markets in Europe, in Asia, in Latin America. So we don't have to over lever ourselves to our existing peak zones, we can be diversified and get exceptional returns, and then the last thing I would note, obviously is the company is growing, and so the capital base that denominator of those 1 in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

jim Williamson: So we don't have to over lever ourselves to our existing peak zones, we can be diversified and get exceptional returns, and then the last thing I would note, obviously is the company is growing. And so the capital base that denominator of those 1 in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

Speaker Change: Last thing I would note obviously as the company is growing and so the capital base that denominator of those one in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L.

jim Williamson: And so the capital base that denominator of those 1 in 100 calculations that you're referencing is getting larger as well, which gives us obviously capacity to prudently grow our portfolio. So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

jim Williamson: So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment. I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

jim Williamson: So if you were to look at on a dollar basis our reported P&L's you'll see growth. I think that growth is appropriate given the environment.

Speaker Change: P&l's.

Speaker Change: You'll see growth.

Speaker Change: Think that growth is appropriate given the environment I would say gross P&L growth is lower than net P&L growth as we've hedged less as mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure.

jim Williamson: I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us. So we're really moving all of these dials to ensure superior returns as we move forward.

jim Williamson: I would say gross P&L growth is lower than net P&L growth, as we've hedged less, as Mark indicated in his comments, which means more retained profit for us.

jim Williamson: So we're really moving all of these dials to ensure superior returns as we move forward.

Mark Kociancic: Greg It's Mark, I'll just add another point to it., I do think that you will see a movement to the right on that slide that you're indicating where it will take a bit more exposure to tail risk through the course of 2024 and probably beyond. We are becoming more of a gross underwriter, and so in addition to Jim's point on the expansion of capital portfolio shaping, there will be less reliance on some of the hedging instruments as we move into more of a gross underwriting mindset, but all within our risk appetite and only where we have significant margin expectations. And then the last point is we are benefiting from meaningful diversification in our property Cat book as well.

Mark: You will see a movement to the right on that slide that you're indicating where it will take.

Mark: A bit more exposure to tail risk through the course of 2024.

Mark: And probably beyond we are becoming more of a gross underwriter.

Mark Kociancic: We are becoming more of a gross underwriter, and so in addition to Jim's point on the expansion of capital portfolio shaping, there will be less reliance on some of the hedging instruments as we move into more of a gross underwriting mindset, but all within our risk appetite and only where we have significant margin expectations. And then the last point is we are benefiting from meaningful diversification in our property Cat book as well.

Mark: And so in addition to Jim's point on the expansion of capital the portfolio shaping there will be less reliance on some of the hedging instruments.

Mark: As we move into more of a gross underwriting mindset, but all within our risk appetite and only where we have significant.

Mark: Significant margin expectations and then the last point is we are benefiting from meaningful diversification in our property cat book as well.

Mark Kociancic: And then the last point is we are benefiting from meaningful diversification in our property Cat book as well.

Gregory Peters: Okay makes sense thanks for the answers.

Operator: Thank you and our next question comes from Brian Meredith with UBS, please go ahead.

Brian: Yes. Please go ahead.

Brian Meredith: Thanks, I've got two quick ones here. The first one, I'm just curious, back to the reserves, and I apologize on the reinsurance side. You're not the only ones in the primary side, obviously, there's some taking to adverse development in the 16 through 19 years on the insurance side. I'm just curious if the Border Rose come in from all these other companies that are taking reserve charges, do you or have you taken into account here that increase in the claims activity and severity that you're likely to see just from Border Rose coming in on reinsurance?

Brian Meredith: Thanks, I've got two quick ones here.

Brian Meredith: The first one, I'm just curious, back to the reserves, and I apologize on the reinsurance side. You're not the only ones in the primary side, obviously, there's some taking to adverse development in the 16 through 19 years on the insurance side. I'm just curious if the Border Rose come in from all these other companies that are taking reserve charges, do you or have you taken into account here that increase in the claims activity and severity that you're likely to see just from Border Rose coming in on reinsurance?

Brian: Not the only ones in the primary side, obviously, some taking to adverse development on the 16 through 19 years on the insurance side.

Speaker Change: I'm just curious is the border Roes come in from all these other companies that are taking reserve charges do you or have you taken into account that increase in the claims activity and severity that you're likely to see just from border Roes coming into on reinsurance.

Brian Meredith: I'm just curious if the Border Rose come in from all these other companies that are taking reserve charges, do you or have you taken into account here that increase in the claims activity and severity that you're likely to see just from Border Rose coming in on reinsurance?

Unknown Executive: Yes, we're definitely I think ahead of the curve on that. That's something that we have. And our and our vision for quite some time and we're prudently reserved clearly in 'twenty three. Been proving out so feel very good about our casually reserve positioning in the reinsurance segment for those years and recent years and Brian its Jim Williams and the only thing I would add to that I totally agree with what Mark said, but. Sure. We're not waiting for border Roes, we have very strong collaboration with our core seasons.

Mark Kociancic: Yes, we're definitely, I think ahead of the curve on that, that's something that we've had in our and our vision for quite some time and we're prudently reserved. Clearly in '23 has been proving out, so feel very good about our casually reserve positioning in the reinsurance segment for those years and recent years.

Speaker Change: That's something that we have.

Speaker Change: And our and our vision for quite some time and we're prudently reserved clearly in 'twenty three.

Speaker Change: Been proving out so feel very good about our casually reserve positioning in the reinsurance segment for those years and recent years and Brian its Jim Williams and the only thing I would add to that I totally agree with what Mark said, but.

jim Williamson: And Brian its Jim Williams, and the only thing I would add to that, I totally agree with what Mark said, but we're not waiting for border rows, we have very strong collaboration with our core seasons. In terms of a claim from a client's management perspective, we're getting signals much earlier than reported border rows, and that helps us to stay on top of these trends and to ensure that we are building significant prudence into our quarterly loss base.

Speaker Change: Sure.

Jim Williams: We're not waiting for border Roes, we have very strong collaboration with our core seasons.

jim Williamson: In terms of a claim from a client's management perspective, we're getting signals much earlier than reported border rows, and that helps us to stay on top of these trends and to ensure that we are building significant prudence into our quarterly loss base.

Jim Williams: In terms of a claim from a claims management perspective, we're getting signals much earlier.

Jim Williams: Then reported border Roes and that helps us to stay on top of these trends and to ensure that we are building significant prudence into our quarterly loss base.

Brian Meredith: Makes sense, and then second question, just curious on capital management, I mean obviously, you've had a lot of fantastic organic growth opportunities here, you're really growing. But as I look at your stock right now, it's kind of come down and getting closer to some pretty attractive valuations. What are your thoughts on kind of using some of the capital that you're generating for share buyback?

Speaker Change: Capital Management, I mean, you obviously, you've had a lot of fantastic organic growth opportunities here, you're really growing.

Brian Meredith: But as I look at your stock right now, it's kind of come down and getting closer to some pretty attractive valuations. What are your thoughts on kind of using some of the capital that you're generating for share buyback?

Brian: But as I look at your stock right now, it's kind of come down and getting closer to some pretty attractive evaluations.

Brian: Your thoughts on kind of using some of the capital that you're generating for share buyback.

Mark Kociancic: Well, it's always a consideration Brian, but we made this point last year. The underwriting opportunities are very lucrative, particularly in reinsurance, and we think we can capture a lot of that in 2024, build our portfolio, build the franchise and we can execute easily. So remunerating that capital is fundamental to achieving our investor day objectives, if we can't do that, yes capital management is a tool that we can use to remunerate our shareholders more adequately, but we're very confident in our ability to achieve those objectives from Investor day. Deploy that capital profitably, build the franchises and get it done there's a runway here for 2024, clearly and well into 2025.

Mark Kociancic: Well, it's always a consideration Brian, but we made this point last year.

Mark Kociancic: The underwriting opportunities are very lucrative, particularly in reinsurance, and we think we can capture a lot of that in 2024, build our portfolio, build the franchise and we can execute easily. So remunerating that capital is fundamental to achieving our investor day objectives, if we can't do that, yes capital management is a tool that we can use to remunerate our shareholders more adequately, but we're very confident in our ability to achieve those objectives from Investor day. Deploy that capital profitably, build the franchises and get it done there's a runway here for 2024, clearly and well into 2025.

Brian: Particularly in reinsurance and we think we can capture.

Brian: A lot of heart in 2024 build our portfolio build the franchise and we can execute easily so remunerating that capital is fundamental to achieving your hour investor day objectives. If we can't do that yes capital management as a tool that we can use to.

Mark Kociancic: So remunerating that capital is fundamental to achieving our investor day objectives, if we can't do that, yes capital management is a tool that we can use to remunerate our shareholders more adequately, but we're very confident in our ability to achieve those objectives from Investor day. Deploy that capital profitably, build the franchises and get it done there's a runway here for 2024, clearly and well into 2025.

Brian: Remunerate our shareholders.

Brian: More adequately, but we're very confident in our ability to achieve.

Brian: Those objectives from Investor day, deploy that capital profitably build the franchises.

Mark Kociancic: Deploy that capital profitably, build the franchises and get it done there's a runway here for 2024, clearly and well into 2025.

Brian: That is done there's a runway here for 2024, clearly and well into 2025.

Juan C. Andrade: Yes, Brian, this is Juan and I would echo to what Mark said. Look from our perspective buybacks are always there right after organic growth, and something that we consider on a regular basis.

Brian Meredith: I appreciate the answers.

Operator: Thanks, Brian. Thank you and our next question comes from Ryan Tunis with Autonomous Research. Please go ahead.

Mark Kociancic: Thanks, Brian.

Operator: Thank you and our next question comes from Ryan Tunis with Autonomous Research. Please go ahead.

Speaker Change: Thank you and our next question comes from Ryan Tunis with Autonomous Research. Please go ahead.

Ryan Tunis: Hey, thanks, just one for me. If we think about the '24, '25, '26 objectives, let's say social inflation continues to kind of nag. So there's an area where there's a little bit of underlying loss ratio pressure at the group level, are those objectives still achievable in your mind? And I guess if not, you mentioned capital management but are there other levers that you can pull to stay within that ROE range?

Ryan Tunis: Hey, thanks, just one for me. If we think about the '24, '25, '26 objectives, let's say social inflation continues to kind of nag.

Ryan Tunis: Just one for me.

Ryan Tunis: If we think about the 24%.

Ryan Tunis: For 2026 objectives.

Ryan Tunis: Let's say social inflation continues to kind of NAV.

Ryan Tunis: So there's an area where there's a little bit of underlying loss ratio pressure at the group level, are those objectives still achievable in your mind? And I guess if not, you mentioned capital management but are there other levers that you can pull to stay within that ROE range?

Ryan Tunis: In a scenario, where there's a little bit of underlying loss ratio pressure at the group level.

Ryan Tunis: Are those objectives still achievable in your mind and I guess, if you mentioned capital management, but are there other levers.

Ryan Tunis: You can pull to stay within that range.

Mark Kociancic: Ryan it's Mark, short answer is yes, very well diversified set of lines of business that we have in both franchises to execute from. Goes back to my earlier point about the granular view that we have in our portfolios, so that we understand where loss trend is, what we think of social inflation exposure, medical inflation, economic inflation etcetera, all the kind of risk factors that go into calculating the expected returns that we can get. And so when you've got that type of diversification, much easier to do cycle management and make sure that you are disciplined in allocating that capital overtime, so lots of paths to do that. In terms of the social inflation aspect, I mean, it's well known I think in the industry, so we're obviously taking prudent loss picks into consideration as we price that business going forward. So we feel very good about the three year plan beginning in 24-26.

Mark Kociancic: Ryan it's Mark, short answer is yes, very well diversified set of lines of business that we have in both franchises to execute from.

Ryan Tunis: Every well diversified set of lines of business that we have in both franchises to execute from goes back to my earlier point about the granular.

Mark Kociancic: Goes back to my earlier point about the granular view that we have in our portfolios, so that we understand where loss trend is, what we think of social inflation exposure, medical inflation, economic inflation etcetera, all the kind of risk factors that go into calculating the expected returns that we can get. And so when you've got that type of diversification, much easier to do cycle management and make sure that you are disciplined in allocating that capital overtime, so lots of paths to do that. In terms of the social inflation aspect, I mean, it's well known I think in the industry, so we're obviously taking prudent loss picks into consideration as we price that business going forward. So we feel very good about the three year plan beginning in 24-26.

Ryan Tunis: Few that we have in our portfolios. So that we understand where loss trend is what we think of social inflation exposure medical inflation economic inflation et cetera, all the kind of risk factors that go into.

Ryan Tunis: Calculating the expected returns that we can get and so when you've got that type of diversification much easier to do cycle management and make sure that you are disciplined in allocating that capital overtime. So lots of paths to do that in terms of the Soc.

Mark Kociancic: And so when you've got that type of diversification, much easier to do cycle management and make sure that you are disciplined in allocating that capital overtime, so lots of paths to do that. In terms of the social inflation aspect, I mean, it's well known I think in the industry, so we're obviously taking prudent loss picks into consideration as we price that business going forward. So we feel very good about the three year plan beginning in 24-26.

Ryan Tunis: Inflation aspect I mean, it's well known I think in the industry. So we're obviously taking prudent.

Mark Kociancic: In terms of the social inflation aspect, I mean, it's well known I think in the industry, so we're obviously taking prudent loss picks into consideration as we price that business going forward. So we feel very good about the three year plan beginning in 24-26.

Ryan Tunis: Loss picks into consideration as we price that business going forward. So we feel.

Mark Kociancic: So we feel very good about the three year plan beginning in 24-26.

Ryan Tunis: Very good about the.

Ryan Tunis: Three year plan beginning in 'twenty four to 'twenty six.

Operator: Thank you and our next question today comes from Michael Zaremski with BMO capital markets. Please go ahead.

Michael Zaremski: BMO capital markets. Please go ahead.

Mike Zaremski: Thanks for fitting me in. So back to the reserving discussion, you said I think, Juan, you might have said that and you're making much higher loss, taking much higher loss picks on the, as of 2020 from looking back at the transcript wording. I don't believe, and maybe I'm incorrect your disclosure of many of your peers, you can see the disclosure, but I don't believe you, that Everest discloses loss picks by vintage for it by major line of business. So unless I'm wrong, and you want to give some color on that would be great to understand how much higher those loss picks are or if you want to change the disclosure in the future. As many of your peers to disclose that.

Ryan Tunis: Yes.

Michael Zaremski: Thanks for fitting me in so.

Michael Zaremski: Back to the.

Speaker Change: Reserving discussion.

Speaker Change: You said.

Speaker Change: One you might have said that and you've been making much higher loss, taking much higher loss picks.

Speaker Change: On the.

Speaker Change: In 2020.

Mike Zaremski: I don't believe, and maybe I'm incorrect your disclosure of many of your peers, you can see the disclosure, but I don't believe you, that Everest discloses loss picks by vintage for it by major line of business. So unless I'm wrong, and you want to give some color on that would be great to understand how much higher those loss picks are or if you want to change the disclosure in the future. As many of your peers to disclose that.

Speaker Change: Back at the transcript wording.

Speaker Change: Believe and maybe I'm.

Speaker Change: Correct.

Speaker Change: Closure of many of your peers, you can see the disclosure, but I don't believe you.

Speaker Change: Average discloses loss picks by vintage for it.

Mike Zaremski: So unless I'm wrong, and you want to give some color on that would be great to understand how much higher those loss picks are or if you want to change the disclosure in the future. As many of your peers to disclose that.

Speaker Change: But by major line of business.

Speaker Change: Unless I'm wrong, and you want to give some color on that would be great.

Speaker Change: Understand how much higher those loss picks are work.

Speaker Change: No change to the disclosure in the future.

Speaker Change: As many of your peers do.

Speaker Change: Or is that.

Unknown Executive: Yes, Mike I'll start and then I'll have Marc add some commentary as well. We don't disclose our loss picks obviously for competitive reasons. But I can tell you that again as I've said before since I arrived here in the fall of 2019 and for the first. Plan that we did for 2020 we. We significantly increased our loss picks in both insurance and reinsurance, particularly on long tail lines of business and that is something that we look at every quarter. And we true up every quarter and you have not been seeing us really take loss picks down at least not since I've been here as the CEO of this company and the reason for that is everything that we have been talking about right now right number one is the fact that we recognize that there is loss inflation and the environment. So thats one of the key reasons for increasing the loss picks and not taken them down. We also have been truing up our loss trend assumptions and we've been doing that on a very regular basis, starting in 2020, so before inflation economic inflation really started to happen. We started doing that really in 2020. So I think those two things really come back to what Mark and I were saying. Earlier in the conversation, which also gives us comfort as to where we are right. Now in addition to that and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike <unk> for example talk about the fact that in lines like excess liability, where we might have had $25 million limits exposed back in 2018 2019, they're down to $10 million now and it's actually a net of five for us in the company so significantly lower. Thats across every single line of business that's out there. So when you take into account the increased loss picks the increase rate the additional loss trend we've put up. The rate in the portfolio management actions the risk selection et cetera. All of this comes together and essentially the conclusion that we're giving you today on how we feel about that go forward business and the fact that we have dealt with the 2016 to 2019 years. Okay. Helpful, especially that reminding us about the limits changes and lots of the policies. In 'twenty and beyond. Let me, let Louis Lastly, I don't know. Just looking at the that you've taken a lot of realized losses makes sense to kind of lock in some higher yields in the handsome Bruce reserve changes to a lot of premium growth, which as you know what she uses up capital. So just is there should we be thinking about.

Juan C. Andrade: Yes, Mike, I'll start and then I'll have Mark add some commentary as well. Look, we don't disclose our loss picks, obviously for competitive reasons, but I can tell you that, again as I've said before. Since I arrived here, in the fall of 2019, and for the first plan that we did for 2020, we significantly increased our loss picks in both insurance and reinsurance, particularly on long tail lines of business. And that is something that we look at every quarter, and we true up every quarter, and you have not been seeing us really take loss picks down, at least not since I've been here as the CEO of this company. And the reason for that is everything that we have been talking about right now right, number one is the fact that we recognize that there is loss inflation in the environment, so thats one of the key reasons for increasing the loss picks and not taken them down. We also have been truing up our loss trend assumptions, and we've been doing that on a very regular basis, starting in 2020, so before inflation, economic inflation really started to happen we started doing that really in 2020. So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: Yes, Mike, I'll start and then I'll have Mark add some commentary as well.

Juan C. Andrade: Look, we don't disclose our loss picks, obviously for competitive reasons, but I can tell you that, again as I've said before. Since I arrived here, in the fall of 2019, and for the first plan that we did for 2020, we significantly increased our loss picks in both insurance and reinsurance, particularly on long tail lines of business. And that is something that we look at every quarter, and we true up every quarter, and you have not been seeing us really take loss picks down, at least not since I've been here as the CEO of this company. And the reason for that is everything that we have been talking about right now right, number one is the fact that we recognize that there is loss inflation in the environment, so thats one of the key reasons for increasing the loss picks and not taken them down. We also have been truing up our loss trend assumptions, and we've been doing that on a very regular basis, starting in 2020, so before inflation, economic inflation really started to happen we started doing that really in 2020. So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Speaker Change: We don't disclose our loss picks obviously for competitive reasons.

Mike: But I can tell you that again as I've said before since I arrived here in the fall of 2019 and for the first.

Speaker Change: Plan that we did for 2020 we.

Speaker Change: We significantly increased our loss picks in both insurance and reinsurance, particularly on long tail lines of business and that is something that we look at every quarter.

Juan C. Andrade: And that is something that we look at every quarter, and we true up every quarter, and you have not been seeing us really take loss picks down, at least not since I've been here as the CEO of this company. And the reason for that is everything that we have been talking about right now right, number one is the fact that we recognize that there is loss inflation in the environment, so thats one of the key reasons for increasing the loss picks and not taken them down. We also have been truing up our loss trend assumptions, and we've been doing that on a very regular basis, starting in 2020, so before inflation, economic inflation really started to happen we started doing that really in 2020. So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Speaker Change: And we true up every quarter and you have not been seeing us really take loss picks down at least not since I've been here as the CEO of this company and the reason for that is everything that we have been talking about right now right number one is the fact that we recognize that there is loss inflation and the environment.

Juan C. Andrade: And the reason for that is everything that we have been talking about right now right, number one is the fact that we recognize that there is loss inflation in the environment, so thats one of the key reasons for increasing the loss picks and not taken them down. We also have been truing up our loss trend assumptions, and we've been doing that on a very regular basis, starting in 2020, so before inflation, economic inflation really started to happen we started doing that really in 2020. So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Speaker Change: So thats one of the key reasons for increasing the loss picks and not taken them down.

Speaker Change: We also have been truing up our loss trend assumptions and we've been doing that on a very regular basis, starting in 2020, so before inflation economic inflation really started to happen. We started doing that really in 2020. So I think those two things really come back to what Mark and I were saying.

Juan C. Andrade: We also have been truing up our loss trend assumptions, and we've been doing that on a very regular basis, starting in 2020, so before inflation, economic inflation really started to happen we started doing that really in 2020. So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now. In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: So I think those two things really come back to what Mark and I were saying earlier in the conversation, which also gives us comfort as to where we are right now.

Speaker Change: Earlier in the conversation, which also gives us comfort as to where we are right. Now in addition to that and very importantly, it's all the risk management and portfolio management actions that we've taken across the book.

Juan C. Andrade: In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book. You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: In addition to that, and very importantly, it's all the risk management and portfolio management actions that we've taken across the book.

Speaker Change: You heard Mike <unk> for example talk about the fact that in lines like excess liability, where we might have had $25 million limits exposed back in 2018 2019, they're down to $10 million now and it's actually a net of five for us in the company so significantly lower.

Juan C. Andrade: You heard Mike Karmilowics for example talk about the fact that in the lines like excess liability, where we might have had $25 million dollars limit exposed back in 2018-2019, they're down to $10 million now. And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there. So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: And it's actually a net of five for us in the company, so significantly lower, and thats across every single line of business that's out there.

Speaker Change: Thats across every single line of business that's out there. So when you take into account the increased loss picks the increase rate the additional loss trend we've put up.

Juan C. Andrade: So when you take into account the increased loss picks, the increase rate, the additional loss trend that we've put up, the rate in the portfolio management actions, the risk selection, etcetera. All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Speaker Change: The rate in the portfolio management actions the risk selection et cetera. All of this comes together and essentially the conclusion that we're giving you today on how we feel about that go forward business and the fact that we have dealt with the 2016 to 2019 years.

Juan C. Andrade: All of this comes together in essentially the conclusion that we're giving you today on how we feel about that go forward business, and the fact that we have dealt with the 2016 to 2019 years.

Mike Zaremski: Okay that's helpful, especially the reminding us about the limits changes on lots of the policies in '20 and beyond. Let me, just lastly, I don't know, just looking at the, you've taken a lot of realized losses make sense to kind of lock in some higher yields and some reserve changes too, a lot of premium growth which uses up capital. So just is there, should we be thinking about just being careful with our buyback assumptions on a go-forward basis, given all the moving parts? Or should we, am I splitting hairs and that you can keep kind of at the current pace?

Mike Zaremski: Okay that's helpful, especially the reminding us about the limits changes on lots of the policies in '20 and beyond.

Speaker Change: Okay.

Speaker Change: Helpful, especially that reminding us about the limits changes and lots of the policies.

Speaker Change: In 'twenty and beyond.

Mike Zaremski: Let me, just lastly, I don't know, just looking at the, you've taken a lot of realized losses make sense to kind of lock in some higher yields and some reserve changes too, a lot of premium growth which uses up capital. So just is there, should we be thinking about just being careful with our buyback assumptions on a go-forward basis, given all the moving parts? Or should we, am I splitting hairs and that you can keep kind of at the current pace?

Speaker Change: Let me, let Louis Lastly, I don't know.

Speaker Change: Just looking at the that you've taken a lot of realized losses makes sense to kind of lock in some higher yields in the handsome Bruce reserve changes to a lot of premium growth, which as you know what she uses up capital. So just is there should we be thinking about.

Mike Zaremski: So just is there, should we be thinking about just being careful with our buyback assumptions on a go-forward basis, given all the moving parts? Or should we, am I splitting hairs and that you can keep kind of at the current pace?

Speaker Change: Yes.

Speaker Change: Being careful with our buyback assumptions on a go forward basis, given all the moving parts are.

Speaker Change: It should.

Speaker Change: Am I splitting hairs and.

Speaker Change: Yes.

Speaker Change: Got it at the current pace.

Mark Kociancic: Mike It's Mark, the first point that I would make is we have ample capital, there's a lot of capital that we have at our disposal. The capital raise that we did last year, fully deployed we've generated an additional $1.5 billion in the second half of 2023, I think we've also got very favorable margin expectations for 2024, and beyond, and so the ability to generate income and retained earnings going forward, we feel very bullish about. And then you've got a process that we have internally, where there is the, I think this is really important, there is a discipline I call threshold pricing, where we are able to move into the most accretive opportunities. We are not forced to simply underwrite certain lines or classes of business to keep volume or whatever, it's very much a profit focus. And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything. Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mark Kociancic: Mike It's Mark, the first point that I would make is we have ample capital, there's a lot of capital that we have at our disposal.

Speaker Change: The first point that I would make is we have ample.

Mike: Ample of capital, there's a lot of capital that we have at our disposal.

Mike: The capital raise that we did last year fully deployed we've generated an additional $1 billion five in the second half of 2023 I think we've also got very.

Mark Kociancic: The capital raise that we did last year, fully deployed we've generated an additional $1.5 billion in the second half of 2023, I think we've also got very favorable margin expectations for 2024, and beyond, and so the ability to generate income and retained earnings going forward, we feel very bullish about. And then you've got a process that we have internally, where there is the, I think this is really important, there is a discipline I call threshold pricing, where we are able to move into the most accretive opportunities. We are not forced to simply underwrite certain lines or classes of business to keep volume or whatever, it's very much a profit focus. And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything. Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Speaker Change: Favorable margin expectations for 2024, and beyond and so the ability to generate it.

Speaker Change: Income and retained earnings going forward, we feel very bullish about.

Mark Kociancic: And then you've got a process that we have internally, where there is the, I think this is really important, there is a discipline I call threshold pricing, where we are able to move into the most accretive opportunities. We are not forced to simply underwrite certain lines or classes of business to keep volume or whatever, it's very much a profit focus. And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything. Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Speaker Change: And then you've got.

Speaker Change: A process that we have internally, where there is the and I think this is really important.

Speaker Change: There is there is a discipline.

Speaker Change: Threat, what I call threshold pricing, where we are able to move into the most accretive opportunities. We are not forced to simply underwrite certain lines or classes of business to keep.

Mark Kociancic: We are not forced to simply underwrite certain lines or classes of business to keep volume or whatever, it's very much a profit focus. And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything. Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mark Kociancic: We are not forced to simply underwrite certain lines or classes of business to keep volume or whatever, it's very much a profit focus.

Speaker Change: Volume or whatever it is it's very much a.

Mark Kociancic: And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything. Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mark Kociancic: And so the attractiveness of what we see in this environment, for underwriting expansion, is is driving everything.

Speaker Change: A profit focus.

Speaker Change: So the attractiveness of what we see in this environment for underwriting expansion is driving everything.

Mark Kociancic: Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now. The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mark Kociancic: Capital Management, I think that's a secondary tool, there is nothing that would restrict it is simply not as privileged given these opportunities that we have now.

Speaker Change: Capital Management I think that's a secondary tool there is nothing that would restrict it is simply not as privileged given these opportunities.

Speaker Change: We have now.

Mark Kociancic: The main point here is that, with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives, then I think you'll see more capital management levers being pulled. But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Speaker Change: The main point here is that with all this ample capital and capital generation ability, if we're not able to remunerate that satisfactorily to our CSR objectives.

Speaker Change: Yeah, then I think youll see more capital management levers being being pulled but there is nothing stopping not conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mark Kociancic: But there is nothing stopping that conceptually it's simply the opportunity set that we have in front of us that we want to pursue and capture.

Mike Zaremski: Thank you.

Operator: Thank you and our next question today comes from Jing Li with KBW. Please go ahead.

Jim: Please go ahead.

Jing Li: Hi, Good morning, thank you for taking my question. Quick question on the runoff book that you mentioned on your block [Inaudible] on your casualty book. Just wondering like how how big was it and whats left on these books? Are they in majority GL books?

Jing Li: Hi, Good morning, thank you for taking my question. Quick question on the runoff book that you mentioned on your block [Inaudible] on your casualty book.

Jim: Quick question on the runoff book.

Jim:

Jim: And blocks and over 10 player on the pitch book.

Jing Li: Just wondering like how how big was it and whats left on these books? Are they in majority GL books?

Jim: Just wondering like how how big it was and whats left on these books are they majority GL book.

Speaker Change: Yes, so one on the two items that we mentioned for general liability and frankly, what's creating some of the issue that we're proactively addressing right now. I would say one of those programs has been completely shut off at this point in time. And then the second book has been Remediated re underwritten very little new business coming into that at this point in time, but I don't know, Mike Carmelo, the chip you'd want to add a little bit of color to that. It's basically a couple of hundred million dollars and these were actually dealt with AUM. For the last 18 to 24 months. So we proactively got in front of it and again I think that gets back to the points made around active and proactive portfolio management. Got it. Thank you and just one more follow up on the spot market.

Juan C. Andrade: Yes, so one, on the two items that we mentioned for general liability and frankly what's creating some of the issue that we're proactively addressing right now, I would say one of those programs has been completely shut off at this point in time. And then the second book has been remediated, re-underwritten, very little new business coming into that at this point in time, but I don't know if Mike Karmilowicz you'd want to add a little bit of color to that? It's basically a couple of hundred million dollars and these were actually dealt with AUM. For the last 18 to 24 months. So we proactively got in front of it and again I think that gets back to the points made around active and proactive portfolio management.

Speaker Change: I would say one of those programs has been completely shut off at this point in time.

Juan C. Andrade: And then the second book has been remediated, re-underwritten, very little new business coming into that at this point in time, but I don't know if Mike Karmilowicz you'd want to add a little bit of color to that?

Speaker Change: And then the second book has been Remediated re underwritten very little new business coming into that at this point in time, but I don't know, Mike Carmelo, the chip you'd want to add a little bit of color to that.

Michael Zaremski: It's basically a couple of hundred million dollars and these were actually dealt with AUM.

Juan C. Andrade: Yes it's basically a couple of hundred million dollars, and these were actually dealt with over the last 18 to 24 months. So we proactively got in front of it, and again I think that gets back to the points made around active and proactive portfolio management.

Juan C. Andrade: Yes it's basically a couple of hundred million dollars, and these were actually dealt with over the last 18 to 24 months.

Michael Zaremski: For the last 18 to 24 months. So we proactively got in front of it and again I think that gets back to the points made around active and proactive portfolio management.

Juan C. Andrade: So we proactively got in front of it, and again I think that gets back to the points made around active and proactive portfolio management.

Speaker Change: Got it.

Speaker Change: Thank you and just one more follow up on the spot market.

Jing Li: Got it, thank you and just one more follow up, on the [Inaudible] market. How attractive do you guys think is for the market looking post reform. Florida.

Speaker Change: How effective do you guys think is.

Speaker Change: Okay looking policy reform.

Speaker Change: Florida.

jim Williamson: Yes, this is Jim Williamson, thanks for the question. Our stance has been pretty consistent in that, we thought the Government of Florida, the legislator did a very good job in the structuring of those reforms. Early indications in terms of communication with our clients in Florida and other stakeholders in the state would suggest that the reforms are doing what they were intended to do. But we also said that we would be waiting for the results of those reforms to show up in our data before determining what that means for our underwriting position. So our approach to Florida has been quite consistent over the last couple of years, we are a meaningful provider of capacity to the states and as long as our expectation for risk adjusted returns are matched, which would mean you know at least as good or improved from last year, meaning excellent we will continue to provide that capacity. Obviously, if that isn't the case, we would do less and if conditions get even better we might do a little bit more, but I don't expect a major change at the upcoming June one renewal.

jim Williamson: Yes, this is Jim Williamson, thanks for the question.

Jim Williams: Our stance has been pretty consistent in that we thought.

jim Williamson: Our stance has been pretty consistent in that, we thought the Government of Florida, the legislator did a very good job in the structuring of those reforms. Early indications in terms of communication with our clients in Florida and other stakeholders in the state would suggest that the reforms are doing what they were intended to do. But we also said that we would be waiting for the results of those reforms to show up in our data before determining what that means for our underwriting position. So our approach to Florida has been quite consistent over the last couple of years, we are a meaningful provider of capacity to the states and as long as our expectation for risk adjusted returns are matched, which would mean you know at least as good or improved from last year, meaning excellent we will continue to provide that capacity. Obviously, if that isn't the case, we would do less and if conditions get even better we might do a little bit more, but I don't expect a major change at the upcoming June one renewal.

Jim Williams: The government of Florida, the legislature did a very good job in the structuring of those reforms.

Jim Williams: Early indications in terms of communication with our clients in Florida and other stakeholders in the state would suggest that the reforms are doing what they were intended to do but.

jim Williamson: But we also said that we would be waiting for the results of those reforms to show up in our data before determining what that means for our underwriting position. So our approach to Florida has been quite consistent over the last couple of years, we are a meaningful provider of capacity to the states and as long as our expectation for risk adjusted returns are matched, which would mean you know at least as good or improved from last year, meaning excellent we will continue to provide that capacity. Obviously, if that isn't the case, we would do less and if conditions get even better we might do a little bit more, but I don't expect a major change at the upcoming June one renewal.

jim Williamson: But we also said that we would be waiting for the results of those reforms to show up in our data before determining what that means for our underwriting position.

Jim Williams: But we also said that we would be waiting for the results of those reforms to show up in our data.

Jim Williams: Before determining what that means for our underwriting position so our.

jim Williamson: So our approach to Florida has been quite consistent over the last couple of years, we are a meaningful provider of capacity to the states and as long as our expectation for risk adjusted returns are matched, which would mean you know at least as good or improved from last year, meaning excellent we will continue to provide that capacity. Obviously, if that isn't the case, we would do less and if conditions get even better we might do a little bit more, but I don't expect a major change at the upcoming June one renewal.

Jim Williams: Our approach to Florida has been quite consistent over the last couple of years, we are a meaningful provider of capacity to the states and as long as our expectation for risk adjusted returns our mat, which would mean you know at least as good or improved from last year, meaning.

Jim Williams: Meaning excellent we will continue to provide that capacity, obviously, if if that isn't the case, we would do less and if conditions get even better we might do a little bit more but I don't expect a major change at the upcoming June one renewal.

jim Williamson: Obviously, if that isn't the case, we would do less and if conditions get even better we might do a little bit more, but I don't expect a major change at the upcoming June one renewal.

Operator: Thank you and ladies and gentlemen. This concludes today's question answer session I would like to turn the conference back over to the management team for any closing remarks.

Juan C. Andrade: Yes, thank you. This is Juan Andrade. So thank you for the great dialogue and all the questions on the actions that we took in the quarter, I do think it's important to zoom out and keep things in context right. If you look at the 2023 results for the company, there were simply outstanding, 23% operating ROE total, total shareholder return of over 26% and if you exclude the Bermuda DTA action, you're still generating an operating ROE of 19 and a CSR of 21, so simply world class results. You also heard our commentary on the 1/1 renewals, which were excellent, that gives us pretty significant tailwind going into 2024. A lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are, and then lastly, as Mark and I both said, we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives. So with that, I look forward to talking to you after our Q1 results. Thank you.

Juan C. Andrade: Yes, thank you. This is Juan Andrade.

Juan C. Andrade: So thank you for the great dialogue and all the questions on the actions that we took in the quarter, I do think it's important to zoom out and keep things in context right. If you look at the 2023 results for the company, there were simply outstanding, 23% operating ROE total, total shareholder return of over 26% and if you exclude the Bermuda DTA action, you're still generating an operating ROE of 19 and a CSR of 21, so simply world class results. You also heard our commentary on the 1/1 renewals, which were excellent, that gives us pretty significant tailwind going into 2024. A lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are, and then lastly, as Mark and I both said, we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives. So with that, I look forward to talking to you after our Q1 results. Thank you.

Juan C. Andrade: So thank you for the great dialogue and all the questions on the actions that we took in the quarter, I do think it's important to zoom out and keep things in context right.

Speaker Change: You look at the 2023 results for the company there were simply outstanding.

Juan C. Andrade: If you look at the 2023 results for the company, there were simply outstanding, 23% operating ROE total, total shareholder return of over 26% and if you exclude the Bermuda DTA action, you're still generating an operating ROE of 19 and a CSR of 21, so simply world class results. You also heard our commentary on the 1/1 renewals, which were excellent, that gives us pretty significant tailwind going into 2024. A lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are, and then lastly, as Mark and I both said, we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives. So with that, I look forward to talking to you after our Q1 results. Thank you.

Speaker Change: 23% operating ROE total.

Speaker Change: Total shareholder return of over 26% and if you exclude the Bermuda DTA action, you're still generating an operating ROE of 19 and in <unk> of 'twenty. One so simply world class results Youll also heard our commentary on the one one renewals, which were excellent that gives us pretty significant tailwind going into two.

Juan C. Andrade: You also heard our commentary on the 1/1 renewals, which were excellent, that gives us pretty significant tailwind going into 2024. A lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are, and then lastly, as Mark and I both said, we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives. So with that, I look forward to talking to you after our Q1 results. Thank you.

Juan C. Andrade: You also heard our commentary on the 1/1 renewals, which were excellent, that gives us pretty significant tailwind going into 2024.

Juan C. Andrade: A lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are, and then lastly, as Mark and I both said, we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives. So with that, I look forward to talking to you after our Q1 results. Thank you.

Speaker Change: 2020 for a lot of great discussion on the reserves and I think hopefully that takeaway that you have here is we have a strong reserve position, we feel confident about where we are and then lastly, as mark and I. Both said we are confident in achieving our investor day targets, we have lots of levers to achieve our objectives so with that.

Juan C. Andrade: So with that, I look forward to talking to you after our Q1 results. Thank you.

Jim Williams: I look forward to talking to you after our Q1 results. Thank you.

Operator: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Jim Williams: Okay. [music].

Jim Williams: [music].

Q4 2023 Everest Group Ltd Earnings Call

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